1. The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively: 450,000 Accounts payable 20,000 Smith, capital Jones, capital Other assets 120,000 Smith, loan 195,000 155,000 470,000 470,000 The partners have decided to liquidate the partnership. If the other assets are sold for P385,000, what amount of the available cash should be distributed to Smith?
1. The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively: 450,000 Accounts payable 20,000 Smith, capital Jones, capital Other assets 120,000 Smith, loan 195,000 155,000 470,000 470,000 The partners have decided to liquidate the partnership. If the other assets are sold for P385,000, what amount of the available cash should be distributed to Smith?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Under partnership liquidation
Transcribed Image Text:1. The following condensed balance sheet is presented for the
partnership of Smith and Jones, who share profits and losses
in the ratio of 60:40, respectively:
450,000 Accounts payable
20,000 Smith, capital
Jones, capital
Other assets
120,000
Smith, loan
195,000
155,000
470,000
470,000
The partners have decided to liquidate the partnership. If the
other assets are sold for P385,000, what amount of the available
cash should be distributed to Smith?
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