In liquidation balances prior to the distribution of cash to the partners are: Cash $240000; Paley Capital $112000; Stengel Capital $104000 and King Capital $24000. The income ratio is 6:2:2 respectively. How much cash should be distributed to Paley?

Question

Quizplus · Accepted Answer

Paley's capital balance is $112,000, and since there are sufficient cash and no liabilities mentioned, Paley should receive the full amount of his capital balance, which is $112,000.

In Liquidation Balances Prior to the Distribution of Cash to the Partners