 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Dividing accounts receivable
A business with four partners splits up with one partner going on his own and the remaining three staying with the original entity. On the day of the split there is an accounts receivable of $40,000. Historically 50% of gross goes to expenses such as salaried employees and rent. There are no expenses associated with the collection of the A/R. If this is treated “as if” the business closed its doors and the partners went their separate ways then each partner is entitled to $10,000. Or should the solo partner receive $5,000 i.e. less 50%?
|
||||
|
||||
|
Wouldn't a better way be to prepare up to date financial statements upon the date he is leaving?
If of that $40,000, $20,000 (50%) must go to expense incurred BEFORE he leaves, then yes he only gets $5,000. If its for future activities, he is entitled to $10,000 |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Based on the following data and using a 365-day year, compute the accounts receivable turn over and number of days' sales in receivables. The industry average is a collection period of once every 20 days, and the number of days' sales in receivables averages 19. Comment on this situation. ...
I'm doing a project and at the end of the month I was suppose to do a schedule of accounts receivable. I have almost no idea on how to approach it. Can anyone tell me what to do in a schedule of accounts receivable? I would appreciate some answers. Thank you.:rolleyes:
Anyone with experience in a no fault divorce state overcoming the presumption of equal contribution? 15 yrs husband home refusing to get a job, he called it being the homemaker. No custody issues. Never had joint assets of any kind, but due to length of marriage he's arguing that he deserves...
Accepted a 90-day $1,000 note receivable from a company for services performed. How do I journalize this transacation? Note Receivables DR $1,000 and CR to which account? Thanks, Dell
View more questions Search
|
