A, B and C decided to liquidate their partnership on July 31, 2020. Their capital balances and profit and loss are as follows: Partner Capital balances Profit/loss ratio A 100,000 40% B 120,000 30% C 40,000 30% From january 1, 2020 to july 31, 2020 the partnership had a net loss of ten thousand, which is not yet reflected in the capital balances. On July 31, 2020 before realization the balance of cash is 50,000 and that of liabilities is 100,000. For A to receive 80,000 in the the settlement of his interest upon liquidation, how much should be the cash proceeds?
A, B and C decided to liquidate their partnership on July 31, 2020. Their capital balances and profit and loss are as follows: Partner Capital balances Profit/loss ratio A 100,000 40% B 120,000 30% C 40,000 30% From january 1, 2020 to july 31, 2020 the partnership had a net loss of ten thousand, which is not yet reflected in the capital balances. On July 31, 2020 before realization the balance of cash is 50,000 and that of liabilities is 100,000. For A to receive 80,000 in the the settlement of his interest upon liquidation, how much should be the cash proceeds?
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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A, B and C decided to liquidate their
| Partner | Capital balances | Profit/loss ratio |
| A | 100,000 | 40% |
| B | 120,000 | 30% |
| C | 40,000 | 30% |
From january 1, 2020 to july 31, 2020 the partnership had a net loss of ten thousand, which is not yet reflected in the capital balances. On July 31, 2020 before realization the balance of cash is 50,000 and that of liabilities is 100,000. For A to receive 80,000 in the the settlement of his interest upon liquidation, how much should be the cash proceeds?
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