Reference no: EM133035511

Questions -

Q1. On May 1, 2010, Cassie, Kiara and Loisa are partners with capital balances of $500,000, $300,000 and $400,000 respectively. They share profits and losses according to their capital balances. Loisa died on this date. They have determined that the net income earned as of this date is $325,000. However, inventories in the amount of $40,000 has been considered worthless but was not considered in the determination of net income. Income earned for the year ended December 31, 2010 is $760,000. The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner's fund until the end of the year provided he/she will be paid 18% interest from the date of his/her date. How much will be paid to the estate of Loisa?

Q2. Kathryn, Mathilda, and Patricia are partners with capital balances of $430,000, $520,000 and $470,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Kathryn $50,000. Upon liquidation, $450,000 is available for distribution to the partners. What amount of cash will each partner receive?

Q3. Partners Sara and Mia divide profits and losses 2:3 with capital balances of $470,000 and $560,000 respectively. They agreed to admit Ana by his purchase of ¼ of Madre's interest for $300,000. They agreed to write off Accounts Receivable worth $5,600. Fixed assets were under-depreciated by $25,000. Payments of accounts payable in the amount of $7,200 was not posted to the payable account. What amount will be credited to Ana's interest?