After the partnership has been operating for a year, the Capital accounts of Bob and Kim are

Question:

After the partnership has been operating for a year, the Capital accounts of Bob and Kim are $15,000 and $10,000, respectively. The firm has cash of $12,000 and office equipment of $13,000. The partners decide to liquidate the partnership. The office equipment is sold for only $4,000. Assuming the partners share income and losses in the ratio of one-third to Bob and two-thirds to Kim, how much cash will be distributed to each partner in liquidation?

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...