Question
The following is the financial statement for Sarsar partnership. The profit/loss percentages for partners Same, Sameer, and Rana are 60%, 30%, and 10%, respectively, on
The following is the financial statement for Sarsar partnership. The profit/loss percentages for partners Same, Sameer, and Rana are 60%, 30%, and 10%, respectively, on 31/12/2020:
Assets | 31/12/2020 | L&CAPITALS | 31/12/2020 |
Cash | 70,000 | account payable | 250,000 |
account /rec. | 90000 | long term debit | 550,000 |
|
| Debit to Same | 50,000 |
Inventories | 440,000 | Same capital | 600,000 |
plant assets | 1040,000 | Huda capital | 300,000 |
intangible assets | 210,000 | Rana capital | 100,000 |
The partners agree to admit salem for 15% interest of the partnership for 150,000 cash and recorded the admission on good will method and every old partner gave up 5% of his percentage.
After the admission the partners are differed between them and decided to solve the partnership. The agree to keep out 20,000$ for dissolving partnership expenses.
On January 31/2021 they sold all the account receivables for 60,000,
March 31/2021 sold all inventories for 320,000
April 30/2021sold 520,000$ of the planet assets for 400,000.
Required:
- Prepare the entry to recorded salem admission
- Prepare vulnerability ranking, losses absorption and cash distribution plane
- Prepare cash distribution schedule
- Distributed the available cash between according to the distribution schedule in 1/1/2021, 31/01/2021,31/03/2021,30/04/2021
- Prepare statement of realization and liquidations with necessary entries assuming all other assets sold for 360,000 at 31/05/2021.
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