OBAMA, BIDEN AND PUTIN FORMED A PARTNERSHIP WITH EACH PARTNER HAVING A 1/3 SHARE
ID: 2460394 • Letter: O
Question
OBAMA, BIDEN AND PUTIN FORMED A PARTNERSHIP WITH EACH PARTNER HAVING A 1/3 SHARE. AFTER MANY SUCCESSFUL YEARS THEY HAVE DECIDED TO TERMINATE THE PARTNERSHIP. THE FOLLOWING BALANCE SHEET EXISTS
ASSETS: EQUITY:
CASH $50,000 OBAMA CAPITAL $8,000
A/R $60,000 BIDEN CAPITAL $2,000
INVENTORY $20,000 PUTIN CAPITAL $130,000
LAND $10,000
TOTAL $140,000 $140,000
DUE TO PUTIN’S EXCEPTIONAL NEGOTIATING SKILLS, THERE WILL BE NO COSTS TO LIQUIDATE THE PARTNERSHIP
What, if any, safe payments can each of the partner’s take?
No partner has taken any safe payments, and the inventory is sold for $5,000, now what safe payments can each of the partner’s take?
No partner has taken any safe payments, and the inventory is sold for $5,000 and the land is sold for $31,000, now what safe payments can each of the partner’s take?
No partner has taken any safe payments, and the inventory is sold for $5000, the land is sold for $31,000 and the receivables are sold for $24,000. Any partner with a negative capital account is unable to pay into the partnership, how much does each partner collect at liquidation?
No partner has taken any safe payments, and the inventory is sold for $5000, the land is sold for $31,000 and the receivables are sold for $24,000. Any partner with a negative capital account is able to cover their shortage. How much does each partner collect or pay at liquidation?
Explanation / Answer
Statement showing safe payments to be made to partners
Putin's capital A/c Dr. 50000
To Cash A/c 50000
If Inventory is sold for 5000
Statement showing safe payments to be made to partners
Putin's capital A/c Dr. 55000
To Cash A/c 55000
If land is sold for 31000 and inventory is sold for 5000
Statement showing safe payments to be made to partners
Putin's capital A/c Dr. 81000
To Cash A/c 81000
If land is sold for 31000 and inventory is sold for 5000
Statement showing safe payments to be made to partners
Putin's capital A/c Dr. 110000
To Cash A/c 110000
Possible losses Obama Biden Putin Partner's equities 8000 2000 130000 Possible losses on non cash assets 90000 30000 30000 30000 (22000) (28000) 100000 Possible losses from obama (Obama's debit balance allocated to biden and putin) 22000 22000 (11000) (11000) 0 (39000) 89000 Biden's debit balance allocated to putin 39000 (39000) 0 50000Related Questions
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