The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below: Assets
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Question:
The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below:
Assets
Cash $240,000
Other Assets 300,000
Total Assets $540,000
Liabilities & Equities
Liabilities $ 160,000
Rice, Loan 60,000
Nutt, Capital 180,000
Ohm, Capital 60,000
Rice, Capital 80,000
Total Equities $540,000
Nutt, Ohm, and Rice share profits and losses in a 30:30:40 ratios. Assume $50,000 of other assets is sold for $20,000.
Required:
A. Prepare Safe Payment distribution schedules for the available cash.
B. Prepare an advance cash distribution plan for the partners.
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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