Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 100,000 80,000 30,000 30,000 Julia Book Value Fair Value Accounts Receivable Inventories 160,000 180,000 Equipment Accounts Payable 180,000 190,000 20,000 20,000
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.
How much cash must be contributed by each of the partners after they contributed their properties (Use this format without the quotation marks: "100000; 25000")
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