Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Baldo, Celso, and Dado form a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally. On August 1, 2021,

Baldo, Celso, and Dado form a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally. On August 1, 2021, Baldo was advanced P100,000 by the firm. On September 1, 2021, Celso made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loans by partners at the rate of 12%. Business is unsatisfactory and the partners decide to dissolve. Dado is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed to partners. All partners are personally solvent and final settlement is made among partners on February 10, 2022. How much Celso should receive from the P350,000 cash?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research On Professional Responsibility And Ethics In Accounting Volume 24

Authors: Charles Richard Baker

1st Edition

180071758X, 9781800717589

More Books

Students also viewed these Accounting questions

Question

=+b) What is the interpretation of the coefficient for Pedro Start?

Answered: 1 week ago