Jamal, Abdul, and Mira decide to end their partnership on January 1, 2018. The partnership's financial position at December 31, 2019, is as follows: Cash payable $10,000 Inventories (30%) 60,000 $100,000 20,000 Equipment-net 60,000 capital (40%) 100,000 Other assets capital (30%) Loan to Jamal 50,000 70,000 10,000 $240,000 Accounts Jamal capital Abdul Mira $240,000 Inventory, Equipment-net, and Other assets are immediately sold for $65,000. A contingency fund of $10,000 is kept and the cash is to be distributed immediately. Jamal is bankrupt at the time of liquidation. Required: Determine the amount of cash that should be
Jamal, Abdul, and Mira decide to end their partnership on January 1, 2018. The partnership's financial position at December 31, 2019, is as follows: Cash payable $10,000 Inventories (30%) 60,000 $100,000 20,000 Equipment-net 60,000 capital (40%) 100,000 Other assets capital (30%) Loan to Jamal 50,000 70,000 10,000 $240,000 Accounts Jamal capital Abdul Mira $240,000 Inventory, Equipment-net, and Other assets are immediately sold for $65,000. A contingency fund of $10,000 is kept and the cash is to be distributed immediately. Jamal is bankrupt at the time of liquidation. Required: Determine the amount of cash that should be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jamal, Abdul, and Mira decide to end their
partnership on January 1, 2018. The
partnership's financial position at December 31,
2019, is as follows :
Cash
$100,000
Accounts
payable $10,000
Inventories
20,000
Jamal capital
(30%)
60,000
Equipment-net
60,000
Abdul
capital (40%) 100,000
Other assets
50,000
Mira
capital (30%)
70,000
Loan to Jamal
10,000
$240,000
$240,000
Inventory, Equipment-net, and Other assets
are immediately sold for $65,000. A contingency
fund of $10,000 is kept and the cash is to be
distributed immediately. Jamal is bankrupt at
the time of liquidation.
Required :
Determine the amount of cash that should be
paid to each partner
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