Andre, Brian and Clarence are partners in textile distribution business, sharing profits and losses equally. On December 31, 2020 the partnership capital and partners drawings were as follows: Andre Brian Clarence Total Capital 100,000 80,000 300,000 480,000 Drawing 60,000 40,000 20,000 120,000 The partnership was unable to collect on trade receivables and was forced to liquidate. Operating profit in 2020 amounted to P72,000 which was all exhausted including the partnership assets. Unsettled creditors' claims at December 31, 2020 totalled 84,000. Brian and Clarence have substantial private resources but Andre has no personal assets. Loss on liquidation was?
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.
Andre, Brian and Clarence are partners in textile distribution business, sharing
Andre Brian Clarence Total
Capital 100,000 80,000 300,000 480,000
Drawing 60,000 40,000 20,000 120,000
The partnership was unable to collect on trade receivables and was forced to liquidate. Operating profit in 2020 amounted to P72,000 which was all exhausted including the partnership assets. Unsettled creditors' claims at December 31, 2020 totalled 84,000. Brian and Clarence have substantial private resources but Andre has no personal assets.
Loss on liquidation was?
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