R, N, and A are partners of RNA Partnership. They decided to liquidate on March 31, of the current year. On this date, they have non-cash assets of 530,000 and liabilities of 250,000, including loan from A of 50,000. R, N, and A have capital balances of 80,000, 130,000, and 90,000, respectively. Profits and losses are 3:3:4 for R, N, and A. All partners are solvent. Determine the total loss on realization if A received 25,000 in the final settlement.
R, N, and A are partners of RNA Partnership. They decided to liquidate on March 31, of the current year. On this date, they have non-cash assets of 530,000 and liabilities of 250,000, including loan from A of 50,000. R, N, and A have capital balances of 80,000, 130,000, and 90,000, respectively. Profits and losses are 3:3:4 for R, N, and A. All partners are solvent. Determine the total loss on realization if A received 25,000 in the final settlement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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R, N, and A are partners of RNA Partnership. They decided to liquidate on March 31, of the current year. On this date, they have non-cash assets of 530,000 and liabilities of 250,000, including loan from A of 50,000. R, N, and A have capital balances of 80,000, 130,000, and 90,000, respectively.
Determine the total loss on realization if A received 25,000 in the final settlement.
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