The IMO partnership is being liquidated.After all liabilities have been paidand all assets sold.the balances of the partner'scapital accounts are as follows:
Akram,Rs.420,000/- credit balance; Munawwar, Rs,160,000/- debit balance; Owais, Rs,530,000/- credit balance.
The partner's share profits and losses as follows:
Akram , 10% Munawar , 60%, Owais , 30%.
REQUIRED:
If all assets are sold out and all libilities are paid,estimate the cash and tell how it should be distributed and recorded in the general journal.Munawwar is personally insolvent and nothing can be recovered from him.