A partnership has liquidated all assets but still reports the following account balances:The partners split profits and losses as follows: Cisneros, 40 percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10 percent. Beck, loan . . . . . . . . . . . . . . . . . $ 8,000Cisneros, capital (40%) . . . . . . . 5,000Beck, capital (20%) .. (12,000) (deficit) Sadak, capital (10%) . . (8,000) (deficit)Emerson, capital (20%) . . . . . . . 13,000Page, capital (10%) . .. (6,000) (deficit) Assuming that all partners are personally insolvent except for Sadak and Emerson, how much cash must Sadak now contribute to this partnership?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
A
The partners split
Beck, loan . . . . . . . . . . . . . . . . . $ 8,000
Cisneros, capital (40%) . . . . . . . 5,000
Beck, capital (20%) .. (12,000) (deficit)
Sadak, capital (10%) . . (8,000) (deficit)
Emerson, capital (20%) . . . . . . . 13,000
Page, capital (10%) . .. (6,000) (deficit)
Assuming that all partners are personally insolvent except for Sadak and Emerson, how much cash must Sadak now contribute to this partnership?
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