Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sameer, Hani, and Ali are partners in SHA Partnership. On 1/1/2021, they decide to liquidate their business. On 31/12/2020, and before closing the net

image text in transcribed

Sameer, Hani, and Ali are partners in SHA Partnership. On 1/1/2021, they decide to liquidate their business. On 31/12/2020, and before closing the net income for 2020, you have the following accounts and balances: Cash Non cash Assets $ 52,000 215,000 Liabilities 5,000 Sameer's capital 134,000 Hani's capital 78,000 Ali's capital 10,000 You know that: Net income for the year 2020 was $40,000. Non cash assets are sold for $160,000 cash Partners share income/ loss in a 4:3:3 ratio, respectively. Required: Calculate the amount of Cash distribution to Sameer, after the liquidation process is over. (Note: in the answer space, write only the number, with no $ signs or commas. That is, if your answer is $1,000, white it as: 1000).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

4th edition

1405888202, 978-0273711490, 273711490, 978-1405888202

More Books

Students also viewed these Accounting questions

Question

Explain what 'recognition' means in accounting?

Answered: 1 week ago

Question

Why are you interested in our program?

Answered: 1 week ago