Abby, Anna, and Anita are partners in a tanning salon. The assets, liabilities, and capital balances as

Question:

Abby, Anna, and Anita are partners in a tanning salon. The assets, liabilities, and capital balances as of July 1, 2014, follow.
Assets ............ $960,000
Liabilities .......... 320,000
Abby, Capital ......... 280,000
Anna, Capital ......... 80,000
Anita, Capital ......... 280,000
Because competition is strong, business is declining, and the has no cash, the partners have decided to sell the business. Abby, Anna, and Anita share income and losses in a ratio of 3:1:1, respectively. The assets were sold for $520,000, and the liabilities were paid. Anna has no other assets and will not be able to cover any deficits in her Capital account. Prepare a statement of to show how the ending cash balance will be distributed to the partners.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...