The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash . . . . . . . . . . . . . . . . . . . . $ 90,000 Accounts payable . . . . .. . . $ 210,000Other assets . . . . . . . . . . . . . 820,000 Ferris, loan . . . . . . . . . . . . . . . 40,000Hardwick, loan . . . . . . . . . . . 30,000 Hardwick, capital . . . . . . .. . 300,000Saunders, capital . . . . . . .. . 200,000Ferris, capital . . . . . . . . . . . 190,000 The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $200,000. Prepare a proposed schedule of liquidation at this point in time.
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 following condensed
who share
Cash . . . . . . . . . . . . . . . . . . . . $ 90,000 Accounts payable . . . . .. . . $ 210,000
Other assets . . . . . . . . . . . . . 820,000 Ferris, loan . . . . . . . . . . . . . . . 40,000
Hardwick, loan . . . . . . . . . . . 30,000 Hardwick, capital . . . . . . .. . 300,000
Saunders, capital . . . . . . .. . 200,000
Ferris, capital . . . . . . . . . . . 190,000
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $200,000. Prepare a proposed schedule of liquidation at this point in time.
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