The HK Partnership is liquidated when the ledger shows: Cash ........... $60,000 Noncash Assets ...... 90,000 Liabilities

Question:

The HK Partnership is liquidated when the ledger shows:

Cash ........... $60,000

Noncash Assets ...... 90,000

Liabilities ........ 44,000

Howell, Capital ...... 100,000

Kenton, Capital ...... 6,000

Howell and Kenton's income ratios are 3:2, respectively.

Instructions

Prepare a schedule of cash payments, assuming that the noncash assets were sold for $65,000. Assume that any partner’s capital deficiencies cannot be paid to the partnership

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...