The following condensed balance sheet is presented for the partnership of Alpha, Baker, and Charley, who share profits and losses in the ratio 4:4:2, respectively:
The partners decide to liquidate the partnership. The first sale of noncash assets having a book value of $90,000 realized $50,000. All cash available after settlement with creditors was distributed.
Required:
How should the available cash have been distributed?

Question

The following condensed balance sheet is presented for the partnership of Alpha, Baker, and Charley, who share profits and losses in the ratio 4:4:2, respectively:
  The partners decide to liquidate the partnership. The first sale of noncash assets having a book value of $90,000 realized $50,000. All cash available after settlement with creditors was distributed.
Required:
How should the available cash have been distributed?

Quizplus · Accepted Answer

The Answer of The following condensed balance sheet is presented for the partnership of Alpha, Baker, and Charley, who share profits and losses in the ratio 4:4:2, respectively:
  The partners decide to liquidate the partnership. The first sale of noncash assets having a book value of $90,000 realized $50,000. All cash available after settlement with creditors was distributed.
Required:
How should the available cash have been distributed?

The Following Condensed Balance Sheet Is Presented for the Partnership