The following condensed balance sheet is presented for the partnership of Axel, Barr and Cain, who share profits and losses in the ratio of 4:3:3, respectively. Cash 100,000 Other assets 300,000 Total assets 400,000 Liabilities 150,000 Axel, capital 40,000 Barr, capital 180,000 Cain, capital 30,000 Total liabilities and capital 400,000 The partners agreed to dissolve the partnership after selling the other assets for $200,000. Upon dissolution of the partnership, how much should each partner receive?(show calculation)
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.
The following condensed balance sheet is presented for the
Cash 100,000
Other assets 300,000
Total assets 400,000
Liabilities 150,000
Axel, capital 40,000
Barr, capital 180,000
Cain, capital 30,000
Total liabilities and capital 400,000
The partners agreed to dissolve the partnership after selling the other assets for $200,000. Upon dissolution of the partnership, how much should each partner receive?(show calculation)
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