A, B and C decided to liquidate their partnership on July 31, 2020. Their capital balances and profit and loss ratio are as follows: Partner Capital balances Profit/loss ratio A 100,000 B 120,000 40,000 40% 30% 30% From January 1, 2020 to July 31, 2020 the partnership had a net loss of ten thousand, which is not yet reflected in the capital balances. On July 31, 2020 before realization the balance of cash is 50,000 and that of liabilities is 100,000. For A to receive 80,000 in the settlement of his interest upon liquidation, how much should be the cash proceeds?
A, B and C decided to liquidate their partnership on July 31, 2020. Their capital balances and profit and loss ratio are as follows: Partner Capital balances Profit/loss ratio A 100,000 B 120,000 40,000 40% 30% 30% From January 1, 2020 to July 31, 2020 the partnership had a net loss of ten thousand, which is not yet reflected in the capital balances. On July 31, 2020 before realization the balance of cash is 50,000 and that of liabilities is 100,000. For A to receive 80,000 in the settlement of his interest upon liquidation, how much should be the cash proceeds?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A, B and C decided to liquidate their partnership on July 31, 2020. Their capital balances and profit and loss
ratio are as follows:
Partner Capital balances Profit/loss ratio
A
100,000
120,000
40,000
40%
B
30%
30%
From January 1, 2020 to July 31, 2020 the partnership had a net loss of ten thousand, which is not yet
reflected in the capital balances. On July 31, 2020 before realization the balance of cash is 50,000 and that
of liabilities is 100,000. For A to receive 80,000 in the settlement of his interest upon liquidation, how much
should be the cash proceeds?
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