On 1/1/06, the partners of Cobb, Davis, and Eddy, who share profits and losses in the ratio 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership condensed balance sheet was as follows:
On 1/15/06, the first cash sale of other assets with a book value of $150,000 realized $120,000. Safe installment payments to the partners were made the same date.
Required:
How should the available cash be distributed?

Question

On 1/1/06, the partners of Cobb, Davis, and Eddy, who share profits and losses in the ratio 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership condensed balance sheet was as follows:
  On 1/15/06, the first cash sale of other assets with a book value of $150,000 realized $120,000. Safe installment payments to the partners were made the same date.
Required:
How should the available cash be distributed?

Quizplus · Accepted Answer

The Answer of On 1/1/06, the partners of Cobb, Davis, and Eddy, who share profits and losses in the ratio 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership condensed balance sheet was as follows:
  On 1/15/06, the first cash sale of other assets with a book value of $150,000 realized $120,000. Safe installment payments to the partners were made the same date.
Required:
How should the available cash be distributed?

On 1/1/06, the Partners of Cobb, Davis, and Eddy, Who