Brewster, Conway, and Ogden are partners who share income and loss in a 1:5:4 ratio. After lengthy

Question:

Brewster, Conway, and Ogden are partners who share income and loss in a 1:5:4 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the Immediately before liquidation, the shows: total assets, $117,000; total liabilities, $87,750; Brewster, Capital, $1,600; Conway, Capital, $11,600; and Ogden, Capital, $16,050. The cash proceeds from selling the assets were sufficient to repay all but $20,500 to the creditors.
(a) Calculate the loss from selling the assets.
(b) Allocate the loss to the partners.
(c) Determine how much of the remaining liability should be paid by each partner.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...