The following balance sheet accounts were taken from the partnership of ABC Co. on March 31, 2015: Cash-P500,000; Other Assets- P3,600,000; Liabilities-P1,040,000; Aly, Capital (40%)-P800,000; Bea, Capital (40%)-P1,300,000 and Cai, Capital (20%)-P960,000. The partnership was liquidated by installment. The proceeds from the first sale of non-cash assets with a book value of P1,800,000 amounted to P1,000,000. In the first month, P640,000 of the liabilities and P50,000 of unrecorded liabilities were paid. The partners also set aside P100,000 for future expenses. How much is the cash balance after the first installment payment?
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.
The following balance sheet accounts were taken from the
How much is the cash balance after the first installment payment?
Step by step
Solved in 2 steps with 2 images
