Calculate every partner respective capital balance

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Reference no: EM132785140

On 07/07/2017, Partnership Peach's balance sheet is as below Balance Sheet @ 07/07/2017

Cash 500,000 Loan 2,000,000

AR 1,000,000 Mortgage 2,000,000

Inventory 3,000,000 Capital-A 2,000,000

PPE 4,500,000 Capital-B 1,000,000

Patent 1,000,000 Capital-C 3,000,000

Note that the loan was borrowed by the partnership from a Bank. The profit/loss sharing ratio was 40%/30% and 30% among A, B and C.

All the partners decide to liquidate Peach, below are the liquidation schedule

08/01/2017, liquidator sold AR for 800,000;

08/15/2017, liquidator sold inventory for 1,000,000

09/15/2017, liquidator sold PPE for 1,000,000,

10/31/2017, liquidator sold patent for 800,000.

11/1/2017, the partnership paid liquidation fee 30,000 in cash.

11/12/2017, the partnership paid off mortgage.

Problem 1: Calculate every partner's respective capital balance after 11/12/2017

Reference no: EM132785140

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