The partners' profit and loss sharing ratio is 2:3:5, respectively.
-If the D, E, and F Partnership is liquidated by selling the equipment for $125,000, and creditors are paid in full, what is the total amount of cash that Partner D will receive in the distribution of cash to partners?

Question

The partners' profit and loss sharing ratio is 2:3:5, respectively. 
-If the D, E, and F Partnership is liquidated by selling the equipment for $125,000, and creditors are paid in full, what is the total amount of cash that Partner D will receive in the distribution of cash to partners?

Quizplus · Accepted Answer

Partner D will receive $40,000 in the distribution of cash to partners after the liquidation and payment of creditors. This is determined by the partnership agreement or the partners' capital account balances after the liquidation proceeds are used to pay off any liabilities.

The Partners' Profit and Loss Sharing Ratio Is 2:3:5, Respectively