The balance sheet of the Ama, Bade, and Calli partnership on May 1, 2011 (before commencement of partnership liquidation)was as follows:
Liquidation events in May were as follows:
- The inventory was sold for $12,000 below book value;
- Plant assets with a book value of $100,000 were sold for $120,000.
Required:
Determine how the available cash on May 31, 2011 should be distributed.

Question

The balance sheet of the Ama, Bade, and Calli partnership on May 1, 2011 (before commencement of partnership liquidation)was as follows:
  Liquidation events in May were as follows:
- The inventory was sold for $12,000 below book value;
- Plant assets with a book value of $100,000 were sold for $120,000.
Required:
Determine how the available cash on May 31, 2011 should be distributed.

Quizplus · Accepted Answer

The Answer of The balance sheet of the Ama, Bade, and Calli partnership on May 1, 2011 (before commencement of partnership liquidation)was as follows:
  Liquidation events in May were as follows:
- The inventory was sold for $12,000 below book value;
- Plant assets with a book value of $100,000 were sold for $120,000.
Required:
Determine how the available cash on May 31, 2011 should be distributed.

The Balance Sheet of the Ama, Bade, and Calli Partnership