Choose the correct answer Esper, Elor, and Este, partners are in textile distribution business sharing profits and losses equally. On December 31, 2014, the partnership capital and partners' drawings are as follows: Esper, Capital= 100,000 Esper, Drawings= 60,000 Elor, Capital= 80,000 Elor, Drawings= 40,000 Este, Capital= 300,000 Este,Drawings= 20,000 The partnership was unable to collect on trade receivables and was forced to liquidate. Operating profit in the year 2014 amounted to 72,000 which was all exhausted including the partnership assets. Unsettled creditors' claim as December 31, 2014 totaled 84,00. Elor and Este have substantial private resources but Esper has no personal assets. Loss on liquidation was: a. 360,000 b. 432,000 c. 480,000 d. 516,000
Choose the correct answer
Esper, Elor, and Este, partners are in textile distribution business sharing
Esper, Capital= 100,000
Esper, Drawings= 60,000
Elor, Capital= 80,000
Elor, Drawings= 40,000
Este, Capital= 300,000
Este,Drawings= 20,000
The partnership was unable to collect on trade receivables and was forced to liquidate. Operating profit in the year 2014 amounted to 72,000 which was all exhausted including the partnership assets. Unsettled creditors' claim as December 31, 2014 totaled 84,00. Elor and Este have substantial private resources but Esper has no personal assets. Loss on liquidation was:
a. 360,000
b. 432,000
c. 480,000
d. 516,000
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