Perry, Quincy, and Renquist had shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $8,000.
Assume that Quincy was insolvent and could not contribute assets to cover any deficit in her capital account. For what amount must the noncash assets have been sold, so that Renquist would have received some cash from the liquidation?
The partnerships needs to sell its noncash assets for at least $88,000 to cover its liquidation costs and liabilities. Any additional cash received through the sale of the noncash assets should be distributed in the liquidation ratio 2:4:4.
E.g. they sell the noncash assets for $90,000, they will distribute $2,000 (=$90,000 - $88,000):
Joe being the lead accountant for his company so, he prepares the financial reports.
Joe made mistakes in financial report making his manager angry because the resources at the Joe's company are limited and financial report that are timely and reliable would have helped the company to attract some financial investment.
They could help give stock to the store/s that's using them. Or, they are the ones getting money for the produce or business, but it helps them get more and more resources for their store.
