The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The gain on realization will be charged to Ali capital is----- O a. 20000 O b. 25000 O c. 15000 O d. 12000

The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The gain on realization will be charged to Ali capital is----- O a. 20000 O b. 25000 O c. 15000 O d. 12000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital
50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for
110000. The gain on realization will be charged to Ali capital is-----
O a. 20000
O b. 25000
O c. 15000
O d.
12000

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