F6 F7 F9 F10 F11 F12 dk QUESTION 6- Liquidation n, Ganesh and Malik had a long-s

Question

F6 F7 F9 F10 F11 F12 dk QUESTION 6- Liquidation n, Ganesh and Malik had a long-standing and highly profitable accounting hu Rahma as a partnership with equal sharing of profits and losses. At the end of 2014, all partners agreed to liquidate the partnership. At that time, the balance sheet was as follows: siness organ ized Assets Liabilities &Owner;'s Equity 1000 Accounts payable 60 $5,00 51 64,400 nventory Rahman, capital Ganesh, capital Malik, capital nd 100 otal assets 211,000 Total liabilities & owner's equity$211,000 The inventory was sold for $54,000 and the land was sold for $220,000 cash. After sale of the assets and settlement of accounts payable, how much were the balances in the partners' capital accountsi? Please create a table for this calculation.

Explanation / Answer

Realised value of assets = 51000+54000+200000 = $305000

Paid to creditors = 5000

Balance distributed to partners in equal ratio = 100000 each

Capital balances after distribution:

Rahman = 51600+100000 = 151600

Ganesh = 64400+100000 = 164400

Malik = 90000+100000 =190000

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