Prepare a program showing how cash should be distributed if the liabilities are $15,000. B) Make the journal entry to distribute $90,000 cash.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The net equities and income-sharing ratio for the R, S, T U Partnership before liquidation were as follows:
| R | S | T | U | |
| Net equity in partnership | $36,000 | $32,400 | $8,000 | $(100) |
| Income-sharing ratio | 3 | 4 | 2 | 1 |
A) Prepare a program showing how cash should be distributed if the liabilities are $15,000.
B) Make the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
