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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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Partners Shuka, Towyo&Fatis, who share profit and loss in the ratio of 3:5:2, respectively have decided to liquidate their partnership. The statement of financial position of the partnership at the time of liquidation is shown below cash 86,300 Accoutns Payable 58,000 other assets 303,700 Loans from Towyo 15,500 Shuka, Capital 93,000 Towyo, Capital 95,000 Fatis Capital 128,500. The partnership is to prepare an instalment distribution schedule showing how cash would be distributed to partners as assets are realized. In the schedule of cash priority program, the maximum absorbable loss for Shuka would be? In the schedule of cash priority program, the maximum absorbable loss for Fatis would be In the schedule of cash priority program, the maximum absorbable loss for Towyo would be

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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