The ABC Partnership is to be liquidated and you have been hired to prepare a schedule of cash payments for the partnership. Partners A, B, and C share profit and losses in the ratio of 6:2:2 respectively. Assume the following:
1. Equipment was sold for $ 80,000.
2. Liabilities were paid in full.
3. The remaining cash was distributed to the partners. (If any partner has a capital deficiency, assume that the partner is unable to make up the capital deficiency.) Instructions
Using the above information, calculate the following:
a) Cash available to be distributed to all partners.
b) Any gain or loss on sale of noncash assets.
c) The amount of cash to be received by each partner upon liquidation.

Question

The ABC Partnership is to be liquidated and you have been hired to prepare a schedule of cash payments for the partnership. Partners A, B, and C share profit and losses in the ratio of 6:2:2 respectively. Assume the following:
1. Equipment was sold for $ 80,000.
2. Liabilities were paid in full.
3. The remaining cash was distributed to the partners. (If any partner has a capital deficiency, assume that the partner is unable to make up the capital deficiency.)  Instructions
Using the above information, calculate the following:
a) Cash available to be distributed to all partners.
b) Any gain or loss on sale of noncash assets.
c) The amount of cash to be received by each partner upon liquidation.

Quizplus · Accepted Answer

The Answer of The ABC Partnership is to be liquidated and you have been hired to prepare a schedule of cash payments for the partnership. Partners A, B, and C share profit and losses in the ratio of 6:2:2 respectively. Assume the following:
1. Equipment was sold for $ 80,000.
2. Liabilities were paid in full.
3. The remaining cash was distributed to the partners. (If any partner has a capital deficiency, assume that the partner is unable to make up the capital deficiency.)  Instructions
Using the above information, calculate the following:
a) Cash available to be distributed to all partners.
b) Any gain or loss on sale of noncash assets.
c) The amount of cash to be received by each partner upon liquidation.

The ABC Partnership Is to Be Liquidated and You Have