On January 1, 2021, the Partners of Won, Cadel, and Dax

question 2

Essay

On January 1, 2021, the partners of Won, Cadel, and Dax (who shared profits and losses in the ratio of 5:3:2, respectively)decided to liquidate their partnership. The trial balance at this date was as follows:
The partners planned an installment program to dispose of the business assets and to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, was to be distributed to the partners at the end of each month. A summary of liquidation transactions follows:
Prepare a schedule to calculate the safe payments to be made to the partners at the end of January.

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Definitions:

Total Cost

The complete amount of expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Quantity Change

An alteration in the amount of goods or services supplied or demanded in a market.

Average Fixed

The fixed costs of production divided by the quantity of output produced, illustrating how those costs are spread over output.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced.