What is the correct answer? 40. The following condensed balance sheet is presented for the partnership of Smith and Jones,who share profits and losses in the ratio of 60:40, respectively:P450,00020,000Other assetSSmith, loan (receivable)Total assetSP120 000Accounts PayableSmith, capitalJones, capitalTotal L& C0000P155,000P470,000The partners decided to liquidate the partnership. If the other assets are sold for P385,000,what amountthe available cash should be distributed to Smith?136,000156,000159,000195,000

Answered: nce sheet is presented for the…

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nce sheet is presented for the partherst a the ratio of 60:40, respectively

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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