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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- 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
- 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
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