The following condensed balance sheet is for the partnership of Hardwick, Saunders, Ferris, who share profits and losses in the ratio of 4:3:3 respectively: Cash $ 96,000 Account payable $56,000 other assets 830,000 ferris, loan 57,000 Hardwick, loan 47,000 hardwick, capital 410,00 saunders, capital 230,000 ferris, capital 220,000 total assets 973,000 total liabilities and capital 973,000 The partners decide o liquidate the partnership. forty percent of the other assets are sold for $100,000. 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 balance sheet is for the
| Cash $ 96,000 | Account payable $56,000 |
| other assets 830,000 | ferris, loan 57,000 |
| Hardwick, loan 47,000 | hardwick, capital 410,00 |
| saunders, capital 230,000 | |
| ferris, capital 220,000 | |
| total assets 973,000 | total liabilities and capital 973,000 |
The partners decide o liquidate the partnership. forty percent of the other assets are sold for $100,000. Prepare a proposed schedule of liquidation at this point in time.
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