The accounts of the partnership of TJ, SR and MD at the end of its fiscal year on October 31, 2021 are as follows: Liabilities P150,OOO Cash 45,000 MD, Loan 30,000 Non-Cash Assets 390,000 TJ, Capital (30%) 135,000 Loan to SR 15,000 SR, capital (50%) 90,000 MD, capital (20%) 45,000 3. If MD received 27,000 on the first distribution of cash, what was the amount of cash realized from the initial sale of assets? 4. If 55,000 is available for distribution to partners after all non-partner liabilities are paid, how much should TJ have received? 5. If in the first distribution, SR received 11,250, how much should MD have received at that point? 6. If in the first distribution, MD received P52,500, how much is the total cash distributed to partners?
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 accounts of the
Liabilities P150,OOO
Cash 45,000 MD, Loan 30,000
Non-Cash Assets 390,000 TJ, Capital (30%) 135,000
Loan to SR 15,000 SR, capital (50%) 90,000
MD, capital (20%) 45,000
3. If MD received 27,000 on the first distribution of cash, what was the amount of cash realized from the initial sale of assets?
4. If 55,000 is available for distribution to partners after all non-partner liabilities are paid, how much should TJ have received?
5. If in the first distribution, SR received 11,250, how much should MD have received at that point?
6. If in the first distribution, MD received P52,500, how much is the total cash distributed to partners?
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