Question
please sir solve this question The CDE partnership is being liquidated. After all liabilities have been paid and all assets sold, the balances of the
please sir solve this question
The CDE partnership is being liquidated. After all liabilities have been paid and all assets sold, the balances of the partners capital accounts are as follows: Ahmad, Rs. 42,000 credit balance; Jawad, Rs. 16,000 debit balance; Ali, Rs. 53,000 credit balance. The partners share profits and losses: Ahmad 10%; Jawad, 60%; Ali, 30%. (a) How should the available cash (the only remaining asset) be distributed if it is impossible to determine at this date whether Jawad will be able to pay Rs. 16,000 he owes to the firm? Draft the journal entry to record payment of all available cash at this time. (b) Draft the journal entries to record a subsequent partial payment of Rs. 13,000 to the firm by Jawad, and the distribution of this cash. Prepare a schedule (similar to the one prepared in part a) showing computation of amount to be distributed to each partner.
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