The DE partnership is undergoing an installment liquidation. Partners D and E share income in a 3:2 ratio and have current capital balances of $63,000 and $90,000, respectively. No loans are receivable from or payable to partners. After outside creditors are paid, if $60,000 in cash becomes available for distribution to the partners, how is it distributed? Select one: O O O O a. $60,000 to D; $0 to E b. $0 to D; $60,000 to E c. $7,200 to D; $52,800 to E d. $10,800 to D; $49,200 to E
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.
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