The balance sheet for Coney, Honey, and Money partnership shows the following information as of December 31, 2015; Cash P 40,000 Liabilities P 100,000 Other assets 560,000 Coney, loan 50,000 Coney, capital 250,000 Honey, capital 140,000 Money, capital 60,000 P 600,000 P 600,000 Profit and loss ratio is 3:2:1 for Coney, Honey, and Money, respectively. Other assets were realized as follows: Date Cash Received Book Value January 2016 P 120,000 P 180,000 February 2016 70,000 154,000 March 2016 250,000 226,000 Cash is distributed as assets are realized. Cash received by Money in January 2016 is?
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 balance sheet for Coney, Honey, and Money
Cash P 40,000 Liabilities P 100,000
Other assets 560,000 Coney, loan 50,000
Coney, capital 250,000
Honey, capital 140,000
Money, capital 60,000
P 600,000 P 600,000
Date Cash Received Book Value
January 2016 P 120,000 P 180,000
February 2016 70,000 154,000
March 2016 250,000 226,000
Cash is distributed as assets are realized.
Cash received by Money in January 2016 is?
Step by step
Solved in 2 steps with 2 images
