Financial position for ZBM Partnership at December 31 2019: Cash 26,000 Accounts Payable 45,000 Equipment 24,000 Zara Capital 44,000 Building 67,000 Bong Capital 32,000 Merry Capital (4, 000) Total 117,000 Total 117,000 Assume that profits and losses are shared in the following ratios: 50:40:10. The partnership is liquidating and selling the partnership's non-cash assets for USD81,000. Merry is unable to make any payment on any capital
Financial position for ZBM Partnership at December 31 2019: Cash 26,000 Accounts Payable 45,000 Equipment 24,000 Zara Capital 44,000 Building 67,000 Bong Capital 32,000 Merry Capital (4, 000) Total 117,000 Total 117,000 Assume that profits and losses are shared in the following ratios: 50:40:10. The partnership is liquidating and selling the partnership's non-cash assets for USD81,000. Merry is unable to make any payment on any capital
Financial position for ZBM Partnership at December 31 2019: Cash 26,000 Accounts Payable 45,000 Equipment 24,000 Zara Capital 44,000 Building 67,000 Bong Capital 32,000 Merry Capital (4, 000) Total 117,000 Total 117,000 Assume that profits and losses are shared in the following ratios: 50:40:10. The partnership is liquidating and selling the partnership's non-cash assets for USD81,000. Merry is unable to make any payment on any capital
Financial position for ZBM Partnership at December 31 2019:
Cash
26,000
Accounts Payable
45,000
Equipment
24,000
Zara Capital
44,000
Building
67,000
Bong Capital
32,000
Merry Capital
(4, 000)
Total
117,000
Total
117,000
Assume that profits and losses are shared in the following ratios: 50:40:10. The partnership is liquidating and selling the partnership's non-cash assets for USD81,000. Merry is unable to make any payment on any capital deficit. What amount of money should be paid to Bong?
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
