Mary, Paula, and Ray have operated a retail store for 20 years. The partners share profits and losses in the ratio of 4:3:3, respectively. The partnership is unable to meet its obligations and the partners decide to liquidate the partnership. The firm’s balance sheet just before the partners sell the other assets for $20,000 is as follows.

After the sale of the noncash assets, the personal assets and liabilities of each partner are determined to be the following:

The partnership operates in a state that has adopted the Uniform Partnership Act.

A. Determine the amount of cash each partner will receive in liquidation and how much cash each partner must contribute to the firm, given their personal positions.
B. Determine the amounts that the personal creditors will receive from personal assets and any distribution from thepartnership.

  • CreatedMarch 16, 2015
  • Files Included
Post your question