Beck, loan... Cisneros, capital (40%)... Beck, capital (20%) . . Sadak, capital (10%).... Emerson, capital (20%)... Page, capital (10%) . $ 8,000 5,000 (12,000) (deficit) (8,000) (deficit) 13,000 (6,000) (deficit)

Beck, loan... Cisneros, capital (40%)... Beck, capital (20%) . . Sadak, capital (10%).... Emerson, capital (20%)... Page, capital (10%) . $ 8,000 5,000 (12,000) (deficit) (8,000) (deficit) 13,000 (6,000) (deficit)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...

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Concept explainers

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.

Question

A partnership has liquidated all assets but still reports the following account balances:

The partners split profits and losses as follows: Cisneros, 40 percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10 percent.

Assuming that all partners are personally insolvent except for Sadak and Emerson, how much cash must Sadak now contribute to this partnership?

Beck, loan...
Cisneros, capital (40%)...
Beck, capital (20%) . .
Sadak, capital (10%)....
Emerson, capital (20%)...
Page, capital (10%) .
$ 8,000
5,000
(12,000) (deficit)
(8,000) (deficit)
13,000
(6,000) (deficit)

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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