David, Paul, and Burt are partners in a CPA firm sharing profits and losses in a ratio of 2:2:3, respectively. Immediately prior to liquidation, the following balance sheet was prepared:

Required:
Assuming the noncash assets are sold for $160,000, determine the amount of cash to be distributed to each partner assuming all partners are personally solvent. Complete the worksheet and clearly indicate the amount of cash to be distributed to each partner in the spaces provided.

Question

David, Paul, and Burt are partners in a CPA firm sharing profits and losses in a ratio of 2:2:3, respectively. Immediately prior to liquidation, the following balance sheet was prepared:

Required:
Assuming the noncash assets are sold for $160,000, determine the amount of cash to be distributed to each partner assuming all partners are personally solvent. Complete the worksheet and clearly indicate the amount of cash to be distributed to each partner in the spaces provided.

Quizplus · Accepted Answer

The Answer of David, Paul, and Burt are partners in a CPA firm sharing profits and losses in a ratio of 2:2:3, respectively. Immediately prior to liquidation, the following balance sheet was prepared:

Required:
Assuming the noncash assets are sold for $160,000, determine the amount of cash to be distributed to each partner assuming all partners are personally solvent. Complete the worksheet and clearly indicate the amount of cash to be distributed to each partner in the spaces provided.

David, Paul, and Burt Are Partners in a CPA Firm