The partnership of Rachel, Joy, and Cecilia has the following account balances: Cash -36,000 Noncash assets - 100,000 Liabilities 17,000 Rachel, capital - 69,000 Joy, capital - (8,000) deficit Cecilia, capital - 58,000 This partnership is in the process of being liquidated. Rachel and Joy are each entitled to 40 percent of all profits and losses with the remaining 20 percent to Cecilia how much is to be paid to Cecilia?
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.
Step by step
Solved in 2 steps
