Question

Nelson, Osman, Peters, and Quincy have decided to terminate their partnership because of recurrent arguments among the partners. The partnership’s balance sheet when they decide to wind up follows:


During the winding-up of the partnership, the other assets were sold for $100,000 and the accounts payable were paid. Osman and Peters are personally solvent, but Nelson and Quincy are personally insolvent.

Required
Determine the amount of cash each partner will receive from the final distributions of the partnership for each of the following independent cases of profit and loss ratios for Nelson, Osman, Peters, and Quincy respectively,
a. The partners share profits and losses in the ratio of 3:3:2:2.
b. The partners share profits and losses in the ratio of 3:1:3:3.
c. The partners share profits and losses in the ratio of3:1:2:4.


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  • CreatedMay 23, 2014
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