The partnership of Guerin, Moradi, and Veloso has the following account balances: $ 51,000 Liabilities $ 41,000 Cash Noncash assets 136,000 Guerin, capital 91,000 Moradi, capital 71,000 Veloso, capital (16,000) This partnership is being liquidated. Guerin and Moradi are each entitled to 30 percent of all profits and losses with the remaining 40 percent going to Veloso. Required: What is the maximum amount that Veloso might have to contribute to this partnership because of the deficit capital balance? How should the $10,000 cash that is presently available in excess of liabilities be distributed? If the noncash assets are sold for a total of $51,000, what is the minimum amount of cash that Guerin could receive? a. Maximum amount S b. Distributed to Guerin $ b. Distributed to Moradi $ b. Distributed to Veloso $ c. Minimum amount $
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.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
