William and Ardi's capital balances are $12.000 and $8,000,respectively. The partnership firm owes wheeler $3,000 on a note. Profitis divided equally. On liquidation, $4,000 in cash is available fordistribution to the two partners. How should this cash be distributed tothem?

Total Capital=W's Capital+A's Capital=$12,000+$8,000=$20,000

Answered: William and Ardi's capital balances are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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William and Ardi's capital balances are $12.000 and $8,000, respectively. The partnership firm owes wheeler $3,000 on a note. Profit is divided equally. On liquidation, $4,000 in cash is available for distribution to the two partners. How should this cash be distributed to them?