On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 Plant assets - net 12,000 B, Capital (30%) 10,000 6,000 C, Capital (50%) 6,000 42,000 Loan to A Total 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021, and began the liquidation process. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: How much cash would B receive from the cash that is available for distribution on July 31?
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.
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