The partners in ABC partnership have decided to liquidate the partnership. Its balance is below. Cash $8,000 Liabilities $4,800 Inventory 4,000 A, capital 5,600 Equipment 20,000 B, capital 9,600 C, capital 12,000 $32,000 TOTAL $32,000 TOTAL
The partners in ABC partnership have decided to liquidate the partnership. Its balance is below. Cash $8,000 Liabilities $4,800 Inventory 4,000 A, capital 5,600 Equipment 20,000 B, capital 9,600 C, capital 12,000 $32,000 TOTAL $32,000 TOTAL
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
am. 124.
Transcribed Image Text:The partners in ABC partnership have decided to liquidate the partnership. Its balance sheet
is below.
Cash
Inventory
Equipment
TOTAL
$8,000 Liabilities $4,800
4,000 A, capital
5,600
20,000 B, capital
9,600
C, capital
12,000
$32,000
$32,000 TOTAL
The partners share income in a 2:3:5 ratio.
Now assume all the inventory is sold for $1.600, but the equipment is not sold. All cash is to
be distributed to the partners, after creditors are paid. How much cash is distributed to
partner A?
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