The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share profits and losses in the ratio of 4:3:3, respectively: Cash $ 85,000 Accounts payable $ 160,000 Other assets 775,000 Zahiri, loan 46,000 Gulian, loan 36,000 Gulian, capital 300,000 Singh, capital 200,000 Zahiri, capital 190,000 Total assets $ 896,000 Total liabilities and capital $ 896,000 Required: The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $260,000. Prepare a proposed schedule of liquidation at this point in time. Note: Amounts to be deducted should be entered with a minus sign.
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 balance sheet is for the
| Cash | $ 85,000 | Accounts payable | $ 160,000 |
| Other assets | 775,000 | Zahiri, loan | 46,000 |
| Gulian, loan | 36,000 | Gulian, capital | 300,000 |
| Singh, capital | 200,000 | ||
| Zahiri, capital | 190,000 | ||
| Total assets | $ 896,000 | Total liabilities and capital | $ 896,000 |
Required:
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $260,000. Prepare a proposed schedule of liquidation at this point in time.
Note: Amounts to be deducted should be entered with a minus sign.
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