Scribd Logo
Upload

Welcome to Scribd!

  • Afar 2 - 2

    Uploaded by

    Panda Erar
    4 views1 page
    The balance sheet shows T, N, and D's partnership had cash of $12,000, other assets of $59,500, liabilities of $20,000, and T, N, and D had capital accounts of $20,000, $15,500, and $14,000 respectively based on a 2:1:1 profit sharing ratio. Certain assets were sold for $32,000, $10,000 of expenses were paid, additional $5,400 of liabilities were paid, and T received $6,250 in the first payment with enough cash retained to pay remaining creditors.

    Original Description:

    Original Title

    AFAR 2 - 2.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The balance sheet shows T, N, and D's partnership had cash of $12,000, other assets of $59,500, liabilities of $20,000, and T, N, and D had capital accounts of $20,000, $15,500, and $14,000 respectively based on a 2:1:1 profit sharing ratio. Certain assets were sold for $32,000, $10,000 of expenses were paid, additional $5,400 of liabilities were paid, and T received $6,250 in the first payment with enough cash retained to pay remaining creditors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    Afar 2 - 2

    Uploaded by

    Panda Erar
    The balance sheet shows T, N, and D's partnership had cash of $12,000, other assets of $59,500, liabilities of $20,000, and T, N, and D had capital accounts of $20,000, $15,500, and $14,000 respectively based on a 2:1:1 profit sharing ratio. Certain assets were sold for $32,000, $10,000 of expenses were paid, additional $5,400 of liabilities were paid, and T received $6,250 in the first payment with enough cash retained to pay remaining creditors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    AFAR 2 – Partnership

    Use the following information for items 3 and 4


    A balance sheet for the partnership of T, N and D who share profits in the ratio of 2:1:1 shows the following balances just before
    the liquidation.
    Cash 12,000

    Other assets 59,500

    Liabilities 20,000

    T, Capital 20,000

    N, Capital 15,500

    D, Capital 14,000

    On the first installment of the liquidation, certain assets are sold for 32,000. Liquidation expense of 10,000 are paid and additional
    liquidation expense are anticipated. Liabilities are paid amounting to 5,400 and sufficient cash is retained to ensure the payment to
    creditors before making payment to partners. On the first payment to partners, T received 6,250.
    1. The total cash payment to partners in the first installment is? 24,000
    2. The amount of cash withheld for anticipated liquidation expense and unpaid liabilities are? 4,600

    You might also like