On 07/07/2017, Partnership Peachâs balance sheet is as below
Balance Sheet @ 07/07/2017
Cash
500,000
Loan
2,000,000
AR
1,000,000
Mortgage
2,000,000
Inventory
3,000,000
Capital-A
2,000,000
PPE
4,500,000
Capital-B
1,000,000
Patent
1,000,000
Capital-C
3,000,000
Note that the loan was borrowed by the partnership fromPartner A. The profit/loss sharing ratio was 40%/30% and30% among A, B and C.
All the partners decide to liquidate Peach, below are theliquidation schedule
08/01/2017, liquidator sold AR for 800,000;
08/15/2017, liquidator sold inventory for 1,000,000
09/15/2017, liquidator sold PPE for 1,000,000,
10/31/2017, liquidator sold patent for 800,000.
11/1/2017, the partnership paid liquidation fee 30,000 incash.
11/12/2017, the partnership paid off mortgage.
Please calculate every partners respective capital balance after11/12/2017.
On 07/07/2017, Partnership Peachâs balance sheet is as below
Balance Sheet @ 07/07/2017 | |||
Cash | 500,000 | Loan | 2,000,000 |
AR | 1,000,000 | Mortgage | 2,000,000 |
Inventory | 3,000,000 | Capital-A | 2,000,000 |
PPE | 4,500,000 | Capital-B | 1,000,000 |
Patent | 1,000,000 | Capital-C | 3,000,000 |
Note that the loan was borrowed by the partnership fromPartner A. The profit/loss sharing ratio was 40%/30% and30% among A, B and C.
All the partners decide to liquidate Peach, below are theliquidation schedule
08/01/2017, liquidator sold AR for 800,000;
08/15/2017, liquidator sold inventory for 1,000,000
09/15/2017, liquidator sold PPE for 1,000,000,
10/31/2017, liquidator sold patent for 800,000.
11/1/2017, the partnership paid liquidation fee 30,000 incash.
11/12/2017, the partnership paid off mortgage.
Please calculate every partners respective capital balance after11/12/2017.
