Question
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
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 $ 52,000
Non cash Assets 230,000
Liabilities 20,000
Sameers capital 134,000
Hanis capital 78,000
Alis 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started