Required Information [The following information apples to the questions clisplayed below.) Turner, Roth, and Lowe are partners who share Income and loss In a 1:4:5 ratio (In percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before llquidation, the partnership balance sheet shows total assets, $135,600; total labilitles, $86,00o; Turner, Capital, $3,300; Roth, Capital, $14,400; and Lowe, Capital, $31,900. Cash recelved from selling the assets was sufficlent to repay all but $32000 to the creditors. Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much each partner should contribute to the partnership to cover any remalning capital deficlency.
Required Information [The following information apples to the questions clisplayed below.) Turner, Roth, and Lowe are partners who share Income and loss In a 1:4:5 ratio (In percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before llquidation, the partnership balance sheet shows total assets, $135,600; total labilitles, $86,00o; Turner, Capital, $3,300; Roth, Capital, $14,400; and Lowe, Capital, $31,900. Cash recelved from selling the assets was sufficlent to repay all but $32000 to the creditors. Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much each partner should contribute to the partnership to cover any remalning capital deficlency.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
Turner, Roth, and Lowe are partners who share Income and loss In a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and
Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquldation, the partnership balance
sheet shows total assets, $135,600; total liabilitles. $86,000; Turner, Capital, $3.300; Roth, Capital, $14,400: and Lowe,
Capital, $31,900. Cash recelved from selling the assets was sufficlent to repay all but $32000 to the creditors.
Required:
a. Calculate the loss from selling the assets.
b. Allocate the loss from part a to the partners.
c. Determine how much each partner should contribute to the partnership to cover any remalning capital deficlency.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.)
Turner
Roth
Lowe
Total
Initial capital balances
3,300
S 14,400
31,900 $
49,600
Allocation of gains (losses)
1/10
4/10
5/10
Capital balances after gains (losses)
< Required A
Required C >
![Required Information
[The following information applies to the questions dlisplayed below.]
Turner, Roth, and Lowe are partners who share Income and loss In a 1:4:5 ratio (In percents: Turner, 10%; Roth, 40%; and
Lowe, 50%). The partners decide to liquidate the partnership. Immedlately before liquldation, the partnership balance
sheet shows total assets, $135,600; total liabilitles, $86,000; Turner, Capital, $3,300; Roth, Capital, $14,400; and Lowe,
Capital. $31,900. Cash recelved from selling the assets was sufficient to repay all but $32.000 to the creditors.
Required:
a. Calculate the loss from selling the assets.
b. Allocate the loss from part a to the partners.
c. Determine how much each partner should contribute to the partnership to cover any remalning capital deficiency.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Calculate the loss from selling the assets.
$ 88,000
54,000
$ 32,000
Liabilities before liquidation
Proceeds from sale of assets (paid to creditors)
Remaining liabilities
Proceeds from sale of assets
Book value of assets sold
$ 54,000
135,600
Loss on sale of assets
$ (81,800)
< Required A
Required B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F9a960ec1-c7b7-4068-b28f-e7b0f094dc31%2Fehkff2f_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions dlisplayed below.]
Turner, Roth, and Lowe are partners who share Income and loss In a 1:4:5 ratio (In percents: Turner, 10%; Roth, 40%; and
Lowe, 50%). The partners decide to liquidate the partnership. Immedlately before liquldation, the partnership balance
sheet shows total assets, $135,600; total liabilitles, $86,000; Turner, Capital, $3,300; Roth, Capital, $14,400; and Lowe,
Capital. $31,900. Cash recelved from selling the assets was sufficient to repay all but $32.000 to the creditors.
Required:
a. Calculate the loss from selling the assets.
b. Allocate the loss from part a to the partners.
c. Determine how much each partner should contribute to the partnership to cover any remalning capital deficiency.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Calculate the loss from selling the assets.
$ 88,000
54,000
$ 32,000
Liabilities before liquidation
Proceeds from sale of assets (paid to creditors)
Remaining liabilities
Proceeds from sale of assets
Book value of assets sold
$ 54,000
135,600
Loss on sale of assets
$ (81,800)
< Required A
Required B >
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