The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. $\begin{array}{|l|c|l|c|}
\hline \text { Assets } & & \text { Liabilities } & \
\hline \text { Cash } & \$ 17,000 & \text { Accounts Payable } & \$ 15,000 \
\hline \text { Accounts Receivable } & 9000 & \text { Other liabilities } & 25,000 \
\hline \text { Furniture } & 28,000 & \text { Partners' Equity } & \
\hline \text { Equipment } & 40,000 & \text { Ryan, Capital } & 31,000 \
\hline \text { Other assets } & 8,000 & \text { Peter, Capital } & 31,000 \
\hline \text { Total assets } & \$ 102,000 & \text { Total liabilities and partners' equity } & \$ 102,000 \
\hline
\end{array}$
Ryan and Peter share profits in the ratio 3:2.They liquidate the partnership.The furniture and equipment
Sold at a loss of $50,000.The accounts receivable were collected in full and the other assets were written
Off as worthless.The cash balance remaining to pay the liabilities is ________.

Question

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. $\begin{array}{|l|c|l|c|}
\hline \text { Assets } & & \text { Liabilities } & \
\hline \text { Cash } & \$ 17,000 & \text { Accounts Payable } & \$ 15,000 \
\hline \text { Accounts Receivable } & 9000 & \text { Other liabilities } & 25,000 \
\hline \text { Furniture } & 28,000 & \text { Partners' Equity } & \
\hline \text { Equipment } & 40,000 & \text { Ryan, Capital } & 31,000 \
\hline \text { Other assets } & 8,000 & \text { Peter, Capital } & 31,000 \
\hline \text { Total assets } & \$ 102,000 & \text { Total liabilities and partners' equity } & \$ 102,000 \
\hline
\end{array}$
 Ryan and Peter share profits in the ratio 3:2.They liquidate the partnership.The furniture and equipment
Sold at a loss of $50,000.The accounts receivable were collected in full and the other assets were written
Off as worthless.The cash balance remaining to pay the liabilities is ________.

Quizplus · Accepted Answer

The cash balance after liquidation can be calculated as follows: Start with the initial cash balance of $17,000. Add the cash collected from accounts receivable ($9,000). The furniture and equipment are sold at a loss of $50,000, but since their combined book value is $68,000 ($28,000 for furniture + $40,000 for equipment), the actual cash received from selling them is $18,000 ($68,000 book value - $50,000 loss). The other assets are written off as worthless, so no cash is received for them. The total cash available after these transactions is $17,000 + $9,000 + $18,000 = $44,000.

The Balance Sheet of Ryan and Peter's Partnership as of December