A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. ding, capital-60,000 Laurel, Capital- 67,000 ezzard, capital- 17,000 Tillman, capital- 96,000 At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time. If the assets could be sold for $228,000 and there are no liquidation expenses, what is the amount that Ding would receive from the liquidation? MultipleChoice a) $38,720. b)$67,250. c)$0 d) $2,500 e) $ 36,000
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.
A local
ding, capital-60,000
Laurel, Capital- 67,000
ezzard, capital- 17,000
Tillman, capital- 96,000
At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time. If the assets could be sold for $228,000 and there are no liquidation expenses, what is the amount that Ding would receive from the liquidation?
MultipleChoice
a) $38,720.
b)$67,250.
c)$0
d) $2,500
e) $ 36,000
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This question is asking amount that Ding would receive instead the answer states what Tillman would receive. Can you please help? Thank you!
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