On December 31, the accounting records of Tito, Vic and Joey Partnership included the following information: Tito, drawings (debit balance) (P48,000) Joey, drawings (debit balance) (18,000) Vic, loan 60,000 Tito, Capital 246,000 Vic, Capital 201,000 Joey, Capital 216,000 Total assets amounted to P957,000, including P105,000 cash and liabilities totaled P300,000. The partnership was liquidated on December 31 and Joey received P166,500 cash pursuant to the liquidation. Tito, Vic, and Joey share net income and losses in a 5:3:2 ratio, respectively. Required: 1. Loss on realization 2. The cash balance after payment of liabilities 3. The amount realized from sale of noncash assets 4. Cash distributed to T
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
On December 31, the accounting records of Tito, Vic and Joey
Tito, drawings (debit balance) (P48,000)
Joey, drawings (debit balance) (18,000)
Vic, loan 60,000
Tito, Capital 246,000
Vic, Capital 201,000
Joey, Capital 216,000
Total assets amounted to P957,000, including P105,000 cash and liabilities totaled P300,000. The partnership
was liquidated on December 31 and Joey received P166,500 cash pursuant to the liquidation. Tito, Vic, and
Joey share net income and losses in a 5:3:2 ratio, respectively.
Required:
1. Loss on realization
2. The cash balance after payment of liabilities
3. The amount realized from sale of noncash assets
4. Cash distributed to T
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