The Abrams,Bartle,and Creighton partnership began the process of liquidation with the following balance sheet: $\begin{array}{lrlr}
\text { Cash } & \$ 16,000 & \text { Liabilities } & \$ 150,000 \
\text { Noncash assets } & 434,000 & \text { Abrams, capital } & 80,000\
&&\text { Bartle, capital } & 90,000 \
&&\text { Creighton, capital } & 130,000 \
\text { Total }&\$450,000&\text { Total } & \$ 450,000
\end{array}$Abrams,Bartle,and Creighton share profits and losses in a ratio of 3:2:5.Liquidation expenses are expected to be $12,000.
The noncash assets were sold for $134,000.Which partner(s)would have had to contribute assets to the partnership to cover a deficit in his or her capital account?

Question

Quizplus · Accepted Answer

The total capital deficit is $12,000 (liquidation expenses) - $134,000 (proceeds from sale of noncash assets) = -$122,000. Abrams and Creighton would have had to contribute assets to cover their capital deficits of $36,600 (3/10 x $122,000) and $85,400 (5/10 x $122,000), respectively.

The Abrams,Bartle,and Creighton Partnership Began the Process of Liquidation with the Following