On December 31, 2020, the accounting records a A, B, and D partnership included the following debit balances: A, drawing 60,000; D, drawing 22,500; and credit balances: B, loan 75,000; A capital 307,500; B, capital 251,250 and D, capital 270,000. The total assets of the partnership amounted to 1,196,250, including 131,250 cash. The partnership was liquidated on December 31 and D received 208,125 pursuant to the liquidation. A, B and D share profits and losses in a 5:3:2 ratio, respectively. The cash balance after payment of liabilities to outsiders amount to: a.774,375 b.886,875 c.624,375 d.999,375
On December 31, 2020, the accounting records a A, B, and D partnership included the following debit balances: A, drawing 60,000; D, drawing 22,500; and credit balances: B, loan 75,000; A capital 307,500; B, capital 251,250 and D, capital 270,000. The total assets of the partnership amounted to 1,196,250, including 131,250 cash. The partnership was liquidated on December 31 and D received 208,125 pursuant to the liquidation. A, B and D share profits and losses in a 5:3:2 ratio, respectively. The cash balance after payment of liabilities to outsiders amount to: a.774,375 b.886,875 c.624,375 d.999,375
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Question
On December 31, 2020, the accounting records a A, B, and D partnership included the following debit balances: A, drawing 60,000; D, drawing 22,500; and credit balances: B, loan 75,000; A capital 307,500; B, capital 251,250 and D, capital 270,000. The total assets of the partnership amounted to 1,196,250, including 131,250 cash. The partnership was liquidated on December 31 and D received 208,125 pursuant to the liquidation. A, B and D share profits and losses in a 5:3:2 ratio, respectively. The cash balance after payment of liabilities to outsiders amount to:
a.774,375
b.886,875
c.624,375
d.999,375
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