Cash Other 2. 3. 1. $Liabilities 30,000 S42,ooo 220,OOOW, capital (50% of profits and losses) 60,000 X, capital (30%) Y, capital (10%) Z, capital (10%) Page 686 78,000 40,000 30,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $5,000 that is currently due. Hle creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $5,000 would be available from Ts portion of the business? Liquidation expenses are expected to be S15,000. L04 On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to liquidate their partnership. The trial balance at this date follows: