Finch, Plover, and Oriole are partners sharing profits and losses 50/20/30 respectively. Their balancesheet is below: Cash $180,000 Payables to Creditors $240,000 Receivable from Finch 40,000 Payableto Plover 50,000 Property & Equipment 500,000 Finch, Capital 100,000 Plover, Capital 180,000Oriole, Capital 150,000 $720,000 $720, 000 Prepare a Cash - Predistribution Schedule, assuming $30,000 of liquidation expenses.

A partnership business is defined as one in which two or more people provide the capital to…

Answered: Finch, Plover, and Oriole are partners…

Business

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Finch, Plover, and Oriole are partners sharing profits and losses 50/20/30 respectively. Their bala

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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Concept explainers

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.

Question

Finch, Plover, and Oriole are partners sharing profits and losses 50/20/30 respectively. Their balance
sheet is below: Cash $180,000 Payables to Creditors $240,000 Receivable from Finch 40,000 Payable
to Plover 50,000 Property & Equipment 500,000 Finch, Capital 100,000 Plover, Capital 180,000
Oriole, Capital 150,000 $720,000 $720, 000 Prepare a Cash - Predistribution Schedule, assuming $
30,000 of liquidation expenses.

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