Jamal, Abdul, and Mira decide to end theirpartnership on January 1, 2018. Thepartnership's financial position at December 31,2019, is as follows :Cash$100,000Accountspayable $10,000Inventories20,000Jamal capital(30%)60,000Equipment-net60,000Abdulcapital (40%) 100,000Other assets50,000Miracapital (30%)70,000Loan to Jamal10,000$240,000$240,000Inventory, Equipment-net, and Other assetsare immediately sold for $65,000. A contingencyfund of $10,000 is kept and the cash is to bedistributed immediately. Jamal is bankrupt atthe time of liquidation.Required :Determine the amount of cash that should bepaid to each partner

Partnership is a form of business in which two or more people come together to manage and operate…

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

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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