Homework Help is Here – Start Your Trial Now!
Business
Accounting
The partners in ABC partnership have decided to liquidate the partnership. Its balance is below. Cash $8,000 Liabilities $4,800 Inventory 4,000 A, capital 5,600 Equipment 20,000 B, capital 9,600 C, capital 12,000 $32,000 TOTAL $32,000 TOTAL

The partners in ABC partnership have decided to liquidate the partnership. Its balance is below. Cash $8,000 Liabilities $4,800 Inventory 4,000 A, capital 5,600 Equipment 20,000 B, capital 9,600 C, capital 12,000 $32,000 TOTAL $32,000 TOTAL

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

am. 124.

The partners in ABC partnership have decided to liquidate the partnership. Its balance sheet is below. Cash Inventory Equipment TOTAL $8,000 Liabilities $4,800 4,000 A, capital 5,600 20,000 B, capital 9,600 C, capital 12,000 $32,000 $32,000 TOTAL The partners share income in a 2:3:5 ratio. Now assume all the inventory is sold for $1.600, but the equipment is not sold. All cash is to be distributed to the partners, after creditors are paid. How much cash is distributed to partner A?
Transcribed Image Text:The partners in ABC partnership have decided to liquidate the partnership. Its balance sheet is below. Cash Inventory Equipment TOTAL $8,000 Liabilities $4,800 4,000 A, capital 5,600 20,000 B, capital 9,600 C, capital 12,000 $32,000 $32,000 TOTAL The partners share income in a 2:3:5 ratio. Now assume all the inventory is sold for $1.600, but the equipment is not sold. All cash is to be distributed to the partners, after creditors are paid. How much cash is distributed to partner A?
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS