King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets.
King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets.
King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets.
King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets.
How much is the non-cash assets of the partnership?
950,000 b. 1,250,000 c. 1,200,000 d. 900,000
How much is the cash proceeds?
1,100,000 b. 800,000 c. 1,400,000 d. 1,050,000
How much is the available cash for distribution to the partners?
1,400,000 b. 1,200,000 c. 1,150,000 d. 250,000
How much cash will Prince receive?
200,000 b. 250,000 c. 275,000 d. 325,000
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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