Question
The following balance sheet was prepared for ABC Partnership, whose partner’s share net income and losses...
The following balance sheet was prepared for ABC Partnership, whose partner’s share net income and losses in the ratio of 3:1:1 respectively:
Cash $ 40,000 Liabilities $ 70,000
Other assets 140,000 Abe, Capital 50,000
Ben, Capital 50,000
Cher, Capital 10,000
Totals $180,000 $180,000
======= =======
The partners liquidate the partnership. Other assets are realized for $80,000.
Prepare a working paper to compute the amount of cash that may be paid to creditors and to partners at this time assuming that all partners are SOLVENT
Please include computations.
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