The balance sheet of Ryan and Peter firm as on December 31,2017,is given below.

Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value),the business is left with $35,000 cash.As a result,Ryan will receive ________.
A)$16,250
B)$21,000
C)$14,000
D)$26,000

Question

The balance sheet of Ryan and Peter firm as on December 31,2017,is given below.

Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value),the business is left with $35,000 cash.As a result,Ryan will receive ________.
A)$16,250 
B)$21,000 
C)$14,000 
D)$26,000

Quizplus · Accepted Answer

A)Upon liquidation,the final cash payment is divided according to the capital balances outstanding as on that date.
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The Balance Sheet of Ryan and Peter Firm as on December