King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets.How much is the non-cash assets of the partnership?950,000 b. 1,250,000 c. 1,200,000 d. 900,000 How much is the cash proceeds?1,100,000 b. 800,000 c. 1,400,000 d. 1,050,000 How much is the available cash for distribution to the partners?1,400,000 b. 1,200,000 c. 1,150,000 d. 250,000 How much cash will Prince receive?200,000 b. 250,000 c. 275,000 d. 325,000

The question deals with partnership accounting at the time of liquidation. Please refer step 2 for…

Answered: King, Queen and Prince are partners…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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King, Queen and Prince are partners sharing profits and loss in the ratio of 1:1:2 respectively. Their capital balances are 500,000 for King, 300,000 for Queen, and 200,000 for Prince. Liabilities amounted to 200,000. There is also a loan payable to Prince, 50,000. The cash balance amounted to 300,000 and it increased to 1,400,000 as a result of the sale of the non-cash assets.

How much is the non-cash assets of the partnership?