On December 31, 2020, the accounting records a A, B, and D partnership included the following debit balances: A, drawing 60,000; D, drawing 22,500; and credit balances: B, loan 75,000; A capital 307,500; B, capital 251,250 and D, capital 270,000. The total assets of the partnership amounted to 1,196,250, including 131,250 cash. The partnership was liquidated on December 31 and D received 208,125 pursuant to the liquidation. A, B and D share profits and losses in a 5:3:2 ratio, respectively.The loss on realization amounts to: a.61,875 b.868,125 c.309,374 d.196,875
On December 31, 2020, the accounting records a A, B, and D partnership included the following debit balances: A, drawing 60,000; D, drawing 22,500; and credit balances: B, loan 75,000; A capital 307,500; B, capital 251,250 and D, capital 270,000. The total assets of the partnership amounted to 1,196,250, including 131,250 cash. The partnership was liquidated on December 31 and D received 208,125 pursuant to the liquidation. A, B and D share profits and losses in a 5:3:2 ratio, respectively.The loss on realization amounts to: a.61,875 b.868,125 c.309,374 d.196,875
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 31, 2020, the accounting records a A, B, and D partnership included the following debit balances: A, drawing 60,000; D, drawing 22,500; and credit balances: B, loan 75,000; A capital 307,500; B, capital 251,250 and D, capital 270,000. The total assets of the partnership amounted to 1,196,250, including 131,250 cash. The partnership was liquidated on December 31 and D received 208,125 pursuant to the liquidation. A, B and D share profits and losses in a 5:3:2 ratio, respectively.The loss on realization amounts to:
a.61,875
b.868,125
c.309,374
d.196,875
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