Answered: i, I have a question about part a of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hi,

I have a question about part a of this problem. I don't know how to calculate the safe payments. Please help me. Take a look at the photo with my problem.

The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively:

Cash $51,000 Liabilities $49,000

Other assets 151,000 Miller, capital 66,000

Tyson, capital 66,000

Watson, capital 21,000

Total assets $202,000 Total liabilities and capital $202,000

a) Assuming no liquidation expenses, calculate the safe payments that can be made to partnersat this point in time.

Miller Tyson Watson

Safe payments $

Thanks,

Arkadii

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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