LAM, KO and TO share profits and losses as follows: LAM 20%, KO 30%, and TO 50%. The partnership’s Statement of Financial Position as of December 31, 2020 is presented below: Cash – P410,400; Noncash Assets – P2,028,600; Liabilities – P690,750; Loan from KO – P67,500; LAM, Capital – P270,000; KO, Capital – P398,250; TO, Capital – P1,012,500. The partners decided to liquidate on January 2, 2021. All partners are personally solvent except for LAM. If TO received P236,250 for her interest, how much were the noncash assets sold for? a. P476,100 b. P516,600 c. P1,512,00 d. P1,552,500
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.
LAM, KO and TO share
P410,400; Noncash Assets – P2,028,600; Liabilities – P690,750; Loan from KO – P67,500; LAM, Capital
– P270,000; KO, Capital – P398,250; TO, Capital – P1,012,500. The partners decided to liquidate on
January 2, 2021. All partners are personally solvent except for LAM. If TO received P236,250 for her
interest, how much were the noncash assets sold for?
a. P476,100
b. P516,600
c. P1,512,00
d. P1,552,500
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