Prior to liquidation, the following information relates to the partnership: Partnership trial balance:

Partnership trial balance:
			Partner Capital
Cash	Other Assets	Liabilities	Adams	Beyer	Chenery
$25,000	$240,000	$200,000	$50,000	$(10,000)	$25,000
Profit and loss percentages	30%	30%	40%

On June 30, other assets with a book value of $160,000 were sold for $120,000, and all available cash with the exception of $20,000 was used to reduce the partnership liabilities. At that time, partners with debit (deficit) capital balances were required to contribute additional capital to whatever extent possible. On July 28, the remaining assets of the partnership were sold for $10,000. Once again, partners with debit (deficit) capital balances were required to contribute additional capital to whatever extent possible. Net personal assets of the partners were as follows:

	Adams	Beyer	Chenery
June 30 balances:
Partner personal assets	$44,000	$31,000	$52,000
Partner personal liabilities	36,000	25,000	30,000
July 28 balances:
Partner personal assets	30,000	22,000	49,000
Partner personal liabilities	22,500	17,000	27,000

Required:

Assuming that the unsatisfied partnership creditors first look to Adams for satisfaction and then to Chenery, determine the amount to be contributed by each partner to satisfy the creditors.

Answer rating: 100% (QA)

Answer Chenery 40 25000 16000 9000 Particulars Profit loss Beginning Balance Sale of Assets ... View the full answer