A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000; Liabilities, $374,000; Nixon (50 percent of profits and losses), $150,000; Cleveland (30 percent), $100,000; Pierce (20 percent), $70,000. The company liquidates, and $15,000 becomes available to the partners. Who gets the $15,000? Determine how much of this amount should be distributed to each partner. (Do not round intermediate calculations.) Nixon Cleveland Pierce Safe Payments
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000; Liabilities, $374,000; Nixon (50 percent of
| Nixon | Cleveland | Pierce | |
| Safe Payments |
Firstly, we shall calculate the losses to the partners.
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