The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the amount of safe cash payments be distributed?
A) In a ratio of 2:4:4 among all the partners.
B) $18,333 to Henry and $16,667 to Jacobs.
C) In a ratio of 1:2 between Henry and Jacobs.
D) $15,000 to Henry and $10,000 to Jacobs.
E) $21,667 to Henry and $3,333 to Jacobs.

Question

The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:  Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the amount of safe cash payments be distributed?
A) In a ratio of 2:4:4 among all the partners. 
B) $18,333 to Henry and $16,667 to Jacobs. 
C) In a ratio of 1:2 between Henry and Jacobs. 
D) $15,000 to Henry and $10,000 to Jacobs. 
E) $21,667 to Henry and $3,333 to Jacobs.

Quizplus · Accepted Answer

The Answer of The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:  Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the amount of safe cash payments be distributed?
A) In a ratio of 2:4:4 among all the partners. 
B) $18,333 to Henry and $16,667 to Jacobs. 
C) In a ratio of 1:2 between Henry and Jacobs. 
D) $15,000 to Henry and $10,000 to Jacobs. 
E) $21,667 to Henry and $3,333 to Jacobs.

The Henry, Isaac, and Jacobs Partnership Was About to Enter