Jamal, Abdul, and Mira decide to end their partnership on January 1, 2018. The partnership's financial...
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Jamal, Abdul, and Mira decide to end their partnership on January 1, 2018. The partnership's financial position at December 31, 2019, is as follows: Cash $100,000 Accounts payable $10,000 Inventories 20,000 Jamal capital (30%) 60,000 Equipment-net 60,000 Abdul capital (40%) 100,000 Other assets 50,000 Mira capital (30%) 70,000 Loan to Jamal 10,000 $240,000 $240,000 Inventory, Equipment-net, and Other assets are immediately sold for $65,000. A contingency fund of $10,000 is kept and the cash is to be distributed immediately. Jamal is bankrupt at the time of liquidation. Required: Determine the amount of cash that should be paid to each partner Jamal, Abdul, and Mira decide to end their partnership on January 1, 2018. The partnership's financial position at December 31, 2019, is as follows: Cash $100,000 Accounts payable $10,000 Inventories 20,000 Jamal capital (30%) 60,000 Equipment-net 60,000 Abdul capital (40%) 100,000 Other assets 50,000 Mira capital (30%) 70,000 Loan to Jamal 10,000 $240,000 $240,000 Inventory, Equipment-net, and Other assets are immediately sold for $65,000. A contingency fund of $10,000 is kept and the cash is to be distributed immediately. Jamal is bankrupt at the time of liquidation. Required: Determine the amount of cash that should be paid to each partner
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Related Book For
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
Posted Date:
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