Solution-Compute the amount of cash withheld

Compute the amount of cash withheld

Reference no: EM132877778

Question - A balance sheet for the partnership of Paul, Ceres and Nava who share profits in the ratio of 2:1:1 shows the following balances just before liquidation:

Cash 12,000

Liabilities 20,000

Other assets 59,500

Total 71,500

Paul, Capital 22,000

Ceres, Capital 15,500

Nava, Capital 14,000

Total 71,500

On the first month of the liquidation, certain assets are sold for 32,000. Liquidation expenses of 1,000 are paid and additional liquidation expenses are anticipated. Liabilities are paid amounting to 5,400 and sufficient cash is retained to ensure the payment to creditors before making payments to partners. On the first payments to partners, Paul receives 6,250.

(1) Compute the total cash distributed to the partners in the first installment?

(2) Compute the amount of cash withheld for anticipated liquidation expenses and unpaid liabilities.

Reference no: EM132877778

Questions Cloud

What amount should be recognized as gain on sale of bonds : The entity sold 4,000 bonds on March 1, 2015 for P3,920,000 after the interest has been received. What amount should be recognized as gain on sale of bonds

Discuss any public health and safety concerns : Discuss the actions that prompted the "border control offensive" and made the issue of illegal immigration a priority along the SW border

What is the homeland security enterprise : Describe the concept of homeland security and its relationship to homeland defense. What is the Homeland Security Enterprise?

What gender assumptions are embedded in the joke : What gender assumptions are embedded in the joke? In other words, what gender norms are being represented (or violated)? If the joke also concerns assumptions

Compute the amount of cash withheld : On the first month of the liquidation, certain assets are sold for 32,000. Compute the amount of cash withheld for anticipated liquidation expenses

Difference between assurance and non assurance services : What's the difference between assurance and non assurance services? Give an example of each that a cpa firm would perform

What is the income tax imposed on the corporate income : Georgia is subject to a marginal tax rate of 35 percent on the bonus. What is the income tax imposed on the corporate income earned by Bulldog

What is the accumulated depreciation on the van : The van is being depreciated straight-line over its useful life. What is the accumulated depreciation on the van as of December 31, 2017

Identify areas that require the use of management : Identify areas that require the use of management judgement and provide explanations. Conclude the level of accounting flexibility

User Account

All Pages

Compute the amount of cash withheld

Reference no: EM132877778

Reference no: EM132877778

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT