Reference no: EM132505379

With the events occuring (e.g. pandemic, enhanced community quarantine and their impacts), assume you are part of a general partnership, Latias Accounting Services, wherein partners share profits and losses equally.

You hold 500,000 capital,

Mikel holds 200,000 capital,

Rike holds 179,000 capital.

• Your total liabilities amount to 550000, wherein 110000 is trades and other payables while 440000 is non current.

On the other hand, your current assets (cash amounts to 350000, Trade and other receivables amount to 400000, and prepaid expenses amount to 110,000) are equal to 860,00 and non-current assets (PPE) are equivalent to 345000.

Question 1: Would it be advisable for a change in profit and loss sharing agreement? Why?

Question 2: Would it be advisable to hire additional partner/s? If yes, which partner classification would be most beneficial to the company and why? If no, why not?

Given all that, provide:

1. a projected Financial Statements for June 2020 for the month of June 2020
2. a statement of liquidation at June 2020 in this scenario wherein the partnership would liquidate.