Balance Sheet Assets Llabilities Cash $180,800 Accounts payable ... $245,500 Inventory 537,200 Equity ......- Kendra, Capital 93,000 Cogley, Capital 212,500 Mei, Capital.. Total liabilities and equity 167,000 Total assets $718,000 $718,000
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.
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3⁄6; Cogley, 2⁄6; and
Mei, 1⁄6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance
sheet appears as follows. Required
Prepare
of liabilities at book value, and (d) the distribution of cash in each of the following separate cases:
Inventory is sold for (1) $600,000; (2) $500,000; (3) $320,000 and partners with deficits pay their deficits
in cash; and (4) $250,000 and partners with deficits do not pay their deficits. (Round to the nearest dollar.)
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