Question

The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information.
1. The partnership’s trial balance on June 30, 20X1, is


2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent.
3. The partners are considering an offer of $100,000 for the firm’s accounts receivable, inventory, and plant and equipment as of June 30. The $100,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.

Required
Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell theassets.


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  • CreatedMay 23, 2014
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