Three partners decided to liquidate their partnership. In accordance with their 3:2:1 income ratio, during step 2 of the process, partner 1 was allocated $7,500, partner 2 was allocated $5,000, and partner 3 was allocated $2,500. The total cash assets for the company at the time of liquidation totaled $9,000. How much was the gain during step 1 of the liquidation process? 1.$9,000 2.$15,000 3.$6,000 4.$24,000
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.
Three partners decided to liquidate their
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