On December 31, 2020, the Statement of Financial Position of EYBISI Partnership with profit or loss ratio of 6:1:3 of partners Anna, Belle, and Cassie respectively, revealed the following data: Cash - 1,000,000 Other Liabilities - 2,000,000 Receivable from Anna - 500,000 Payable to Belle - 1,000,000 Other non-cash assets - 2,000,000 Payable to Cassie - 100,000 Anna, Capital 700,000 Belle, Capital (650,000) Cassie, Capital 350,000 On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non-cash assets were sold for $1,500,000. Liquidation expenses amounting to $100,000 were incurred. a. What amount of cash was received by Belle at the end of partnership liquidation? b. What amount of cash was received by Anna at the end of partnership liquidation?
On December 31, 2020, the
Cash - 1,000,000 Other Liabilities - 2,000,000
Receivable from Anna - 500,000 Payable to Belle - 1,000,000
Other non-cash assets - 2,000,000 Payable to Cassie - 100,000
Anna, Capital 700,000
Belle, Capital (650,000)
Cassie, Capital 350,000
On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non-cash assets were sold for $1,500,000. Liquidation expenses amounting to $100,000 were incurred.
a. What amount of cash was received by Belle at the end of partnership liquidation?
b. What amount of cash was received by Anna at the end of partnership liquidation?
Step by step
Solved in 3 steps with 3 images
