Esper, Ester, Ethel and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to creditors and liquidation is authorized on September 30, 2012. A statement of financial position for the partnership on this date shows balances as follows: Cash 90,000 Liabilities 265,000 Other Assets 400,000 Elmer, Loan 25,000 Esper, Capital 50,000 Ester, Capital 50,000 Ethel, Capital 50,000 Elmer, Capital 50,000 Total Assets 490,000 Total Liabilities and Capital 490,000 The personal status of partners on this date is determined to be as follows: Partners Personal Assets Personal Liabilities Esper 250,000 150,000 Ester 100,000 150,000 Ethel 150,000 125,000 Elmer 200,000 250,000 The Other Assets of the partnership are sold and realized for 120,000. Additional contributions by appropriate parties in meeting the claims of firm creditors were made.

Esper, Ester, Ethel and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to creditors and liquidation is authorized on September 30, 2012. A statement of financial position for the partnership on this date shows balances as follows: Cash 90,000 Liabilities 265,000 Other Assets 400,000 Elmer, Loan 25,000 Esper, Capital 50,000 Ester, Capital 50,000 Ethel, Capital 50,000 Elmer, Capital 50,000 Total Assets 490,000 Total Liabilities and Capital 490,000 The personal status of partners on this date is determined to be as follows: Partners Personal Assets Personal Liabilities Esper 250,000 150,000 Ester 100,000 150,000 Ethel 150,000 125,000 Elmer 200,000 250,000 The Other Assets of the partnership are sold and realized for 120,000. Additional contributions by appropriate parties in meeting the claims of firm creditors were made.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 43P

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