The Burr, Clinton and Hamilton partnership is entering into liquidation with the following account balances:
cash 117,000 liabilities 82,000
noncash assets 305,000 burr, capital 80,000
clinton, capital 100,000
howe, capital 160,000
total 422,000 422,0000
Estimated partnership liquidation expenses were $18,000. The partners share profits and losses in a ratio of 20:30:50.
|What amount of cash was available for safe payments based on the above information?|
|Cash||Non cash assets||Burr||Clinton||Howe|
|Less: Estimated liquidation expense||-18000||-3600||-5400||-9000|
|Less: Loss of Noncash assets||-305000||-61000||-91500||-152500|
|Less: Loss of Howe in Profit & Loss ratio||-600||-900||1500|
|Cash payment (Safe to be made)||-17000||-14800||-2200||0|
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