The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Included in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were solvent.
What amount would noncash assets need to be sold for in order for any partner to receive some cash?

Question

The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation:  Included in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were solvent.
What amount would noncash assets need to be sold for in order for any partner to receive some cash?

Quizplus · Accepted Answer

Cash $90,000 - Liquidation Expenses $15,000 - Liabilities $170,000 = Balance Needed from Non-Cash Assets ($95,000)

The Following Account Balances Were Available for the Perry, Quincy