S and T are equal partners in the ST partnership and share profits and losses ac
ID: 2618597 • Letter: S
Question
S and T are equal partners in the ST partnership and share profits and losses accordingly. At the end of 20x 1 the partnerships capital accounts reflect the following numbers due to a special allocation of depreciation Capital S ($20000) capital T $60000All the assets are sold for $40000, how much will T receive in liquidation if the special allocation is to be respected A $20000 B $40000 C $60000 D $80000 S and T are equal partners in the ST partnership and share profits and losses accordingly. At the end of 20x 1 the partnerships capital accounts reflect the following numbers due to a special allocation of depreciation Capital S ($20000) capital T $60000
All the assets are sold for $40000, how much will T receive in liquidation if the special allocation is to be respected A $20000 B $40000 C $60000 D $80000 Capital S ($20000) capital T $60000
All the assets are sold for $40000, how much will T receive in liquidation if the special allocation is to be respected A $20000 B $40000 C $60000 D $80000
Explanation / Answer
Capital s = ($ 20,000) it means the capital of S is in negative so he have to pay $ 20,000 in the partnership for keep the 0. So After insrting the Captial of $ 20,000 from Mr. S the new aavailable balance in cash is $ 20,000
And Mr. T have the capital balance of $ 60,000 and cash available in the partnership is $ 60,000
This all $ 60,000 will be pay as Capital T .
Answer = T will receive in liquidation = Option C = $ 60,000
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