Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They decided to liquidate the business. The assets were sold and liabilities amounting to $20,000 were paid. At this point, the capital balances of the partners are as follows: Ana $20,000 credit Bea 15,000 debit Cara 30,000 credit Bea is personally insolvent. 1. How much cash is available for distribution to partners? 2. How much cash is received by Ana and Cara?
Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They decided to liquidate the business. The assets were sold and liabilities amounting to $20,000 were paid. At this point, the capital balances of the partners are as follows: Ana $20,000 credit Bea 15,000 debit Cara 30,000 credit Bea is personally insolvent. 1. How much cash is available for distribution to partners? 2. How much cash is received by Ana and Cara?
Chapter21: Partnerships
Section: Chapter Questions
Problem 3BCRQ
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Ana, Bea, and Cara are partners sharing
| Ana | $20,000 credit |
| Bea | 15,000 debit |
| Cara | 30,000 credit |
Bea is personally insolvent.
1. How much cash is available for distribution to partners?
2. How much cash is received by Ana and Cara?
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