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: Cash . . . . . . . . . . . . . . . . . . . $ 50,000 Liabilities . . . . . . . . . . . . . .. . $ 42,000Other assets . . . . . . . . . . . . 150,000 Miller, capital . . . . . . . . . . . . 69,000Tyson, capital . . . . . . . . . . . .69,000Watson, capital . . . . . . . . . . 20,000 For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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
Cash . . . . . . . . . . . . . . . . . . . $ 50,000 Liabilities . . . . . . . . . . . . . .. . $ 42,000
Other assets . . . . . . . . . . . . 150,000 Miller, capital . . . . . . . . . . . . 69,000
Tyson, capital . . . . . . . . . . . .69,000
Watson, capital . . . . . . . . . . 20,000
For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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