Question

B an C have dissolve there partnership at the end of piecemeal distribution, the remaining cash is rs.140000. B's capital balance is 68000 and C's capital balance is 72000 their partnership agreement State that there will share in profit and losses on 2:1 ratio the amount of cash to be distributed to be is __

Answer 1

Answer:

Explanation:

Profit Sharing ratio 2 : 1

Partner B Capital 68000----2 ---- per unit capital --- 34000--- 68000/2

Partner C Capital 72000----1------per unit capital ----72000---72000/1

B's capital lowest 34000

taking B as base

Partners capital  based on B' capital

Partner B Capital 68000----2 ----base

Partner C Capital 34000----1-----68000/2 ---

First distribution -- to C            38000------       (72000-34000)

Balance capital after 38000 distribution

Partner B Capital 68000

Partner C Capital 34000 ----- (72000-34000)

Second Distribution

Available fund     102000 --------------------(140000-38000)

distribution in profit sharing ratio

Partner B Capital 68000--- 68000-----------------(102000X 2)/3

Partner C Capital 34000 ----- 34000-------------(102000X1)/3