The partnership of Able, Bower, and Cramer was liquidated. The partners have shared profits and losses in the ratio of 2:4:4. Prior to liquidation, their capital balances were the following*: Able Bower Cramer $10,000 $(5,000) $(15,000) * Deficit shown in parentheses Cash totaled $20,000, with liabilities amounting to $30,000. A review of the individual partners' personal financial status reveals the following:
The partnership of Able, Bower, and Cramer was liquidated. The partners have shared profits and losses in the ratio of 2:4:4. Prior to liquidation, their capital balances were the following*: Able Bower Cramer $10,000 $(5,000) $(15,000) * Deficit shown in parentheses Cash totaled $20,000, with liabilities amounting to $30,000. A review of the individual partners' personal financial status reveals the following:
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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The partnership of Able, Bower, and Cramer was liquidated. The partners have shared
|
Able |
Bower |
Cramer |
|
$10,000 |
$(5,000) |
$(15,000) |
* Deficit shown in parentheses
Cash totaled $20,000, with liabilities amounting to $30,000. A review of the individual partners' personal financial status reveals the following:
|
|
Assets |
Liabilities |
|
Able |
$ 5,000 |
$20,000 |
|
Bower |
6,000 |
4,000 |
|
Cramer |
30,000 |
20,000 |
Required: Prepare a worksheet to liquidate the partnership.
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