When the partnership decided to dissolve its assets are


Scenario: Dill and Edy formed a partnership. Edy's capital contribution is $10,000, and Dill's capital contribution is$15,000. The partnership agreement provides that profits are to be shared, with 40% of the profits going to Edy and 60% of the profits going to Dill.

Later, Edy made a $10,000 loan to the partnership when it needed working capital.

When the partnership decided to dissolve, its assets are $50,000 total, and its debts are $8.000.

How should the assets be distributed - in what specific amounts - and why? Show calculations.

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Accounting Basics: When the partnership decided to dissolve its assets are
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