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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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