How much cash will partners receive in final liquidation


Response to the following problem:

Grant, Harris, and Isbell are liquidating their partnership. Before selling the noncash assets and paying the liabilities, the capital balances are Grant $23,000; Harris, $20,000; and Isbell, $11,000. The partnership agreement specifies no division of profits and losses.

Required:

1. After selling the noncash assets and paying the liabilities, the partnership has cash of $54,000. How much cash will each partner receive in final liquidation?

2. After selling the noncash assets and paying the liabilities, the partnership has cash of $45,000. How much cash will each partner receive in final liquidation?

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Standards: How much cash will partners receive in final liquidation
Reference No:- TGS02112429

Expected delivery within 24 Hours