Gerald, Julia and Bea are partners who decided to terminate their partnership due to misunderstanding. Total assets of the partnership is $480,000 including cash of $30,000. Capital balances of the partners were as follows: Gerald $150,000 Julia $175,000 Bea $67,500. Unpaid liabilities amounted to $87,500. Assets with a book value of $175,000 were sold for $125,000 and the cash was distributed. The P/L ratio is 5:3:2 What amount must the remaining assets be sold in order for Julia to receive $197,500 after liquidation?
Gerald, Julia and Bea are partners who decided to terminate their partnership due to misunderstanding. Total assets of the partnership is $480,000 including cash of $30,000. Capital balances of the partners were as follows: Gerald $150,000 Julia $175,000 Bea $67,500. Unpaid liabilities amounted to $87,500. Assets with a book value of $175,000 were sold for $125,000 and the cash was distributed. The P/L ratio is 5:3:2 What amount must the remaining assets be sold in order for Julia to receive $197,500 after liquidation?
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Gerald, Julia and Bea are partners who decided to terminate their
- Total assets of the partnership is $480,000 including cash of $30,000.
- Capital balances of the partners were as follows:
Gerald $150,000
Julia $175,000
Bea $67,500.
- Unpaid liabilities amounted to $87,500.
- Assets with a book value of $175,000 were sold for $125,000 and the cash was distributed.
- The P/L ratio is 5:3:2
What amount must the remaining assets be sold in order for Julia to receive $197,500 after liquidation?
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