Sameer, Hani, and Ali are partners in SHA Partnership. On 1/1/ 2021, they decide to liquidate their
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Question:
Sameer, Hani, and Ali are partners in SHA Partnership. On 1/1/ 2021, they decide to liquidate their business. On 31/12/2020, and before closing the net income for 2020, you have the following accounts and balances:
Cash $ 52,000
Non cash Assets 215,000
Liabilities 5,000
Sameer’s capital 134,000
Hani’s capital 78,000
Ali’s capital 10,000
You know that:
Net income for the year 2020 was $ 40,000.
Non cash assets are sold for $160,000 cash
Partners share income/ loss in a 4:3:3 ratio, respectively.
Required: Calculate the amount of Cash distribution to Sameer, after the liquidation process is over.
Related Book For
Basic Finance An Introduction to Financial Institutions, Investments and Management
ISBN: 978-1285425795
11th Edition
Authors: Herbert B. Mayo
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