The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively. 50, e00 Cash Other assets Liabilities 2$ Miller, capital Tyson, capital Watson, capital Total liabilities and capital 42, еее 69,еее 69, еее 20,e00 150,000 Total assets $ 200,000 $ 200,000 For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? 8 Answer is not complete. Other assets must be for an amount over sold
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.
Loss to eliminate the capital:
For Miller = 69,000 / 0.6 = 115,000
For Tyson = 69,000 / 0.2 = 345,000
For Watson = 20,000 / 0.2 = 100,000
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