Following is the statement of financial position of ABC Partnership before realization of assets on July 1, 2020:CASH10,000LIABILITIES28,000ACCOUNTS RECEIVABLE50,000A, CAPITAL45,000INVENTORY30,000B, CAPITAL27,000EQUIPMENT60,000C, CAPITAL50,000TOTAL150,000TOTAL150,000The partners share income 30:30:40, respectively. On Jyuly 2, the partnership liquidated. 50% of the receivables are collected and that inventory is sold for 15,000. Equipment is sold for 40,000. How much is to be distributed to B?

Characteristics of Partnership : Two or More Persons Mutual Agency Earning & Sharing profit…

Answered: Following is the statement of financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following is the statement of financial position of ABC Partnership before realization of assets on July 1, 2020:

CASH	10,000	LIABILITIES	28,000
ACCOUNTS RECEIVABLE	50,000	A, CAPITAL	45,000
INVENTORY	30,000	B, CAPITAL	27,000
EQUIPMENT	60,000	C, CAPITAL	50,000
TOTAL	150,000	TOTAL	150,000

The partners share income 30:30:40, respectively. On Jyuly 2, the partnership liquidated. 50% of the receivables are collected and that inventory is sold for 15,000. Equipment is sold for 40,000. How much is to be distributed to B?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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