The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value),the business is left with $56,000 cash.As a result,Ryan will receive ________.

Question

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below.  Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value),the business is left with $56,000 cash.As a result,Ryan will receive ________.

Quizplus · Accepted Answer

Upon liquidation,the final cash payment is divided according to the capital balances
outstanding as of that date.(Total assets $96,000 - Total liabilities $40,000 = $56,000)
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The Balance Sheet of Ryan and Peter's Partnership as of December