In liquidation, balances prior to the distribution of cash to the partners are: Cash $300,000; Presley, Capital $140,000; Laswell, Capital $130,000, and Hunter, Capital $30,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Presley?

Question

Quizplus · Accepted Answer

Presley should receive the full amount of his capital balance, which is $140,000, as there is sufficient cash to cover all partners' capital balances.

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