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After Selling the Assets and Paying the Creditors, the Partnership

Question 14

Multiple Choice

After selling the assets and paying the creditors, the partnership had $90,000 cash remaining. A, B, and C had capital balances of $20,000, $30,000 and $40,000 respectively. Profit is shared on a ratio of 1:3:5, respectively. The cash to be received by partner C would be:


A) $30,000.
B) $40,000.
C) $45,000.
D) $50,000.

Correct Answer:

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