Chapter 12 week 1 E12-22

# Chapter 12 week 1 E12-22 - 2 After selling the assets and...

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E12-22 Ray, Scott, and Van are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Ray \$33,000; Scott, \$28,000; and Van, \$19,000. The partnership agreement specifies no division of profits and losses. Ray capital 33,000 Scott capital 28,000 Van capital 19,000 total 80,000 1. After selling the assets and paying the liabilities, the partnership has cash of \$80,000. How much cash will each partner receive in final liquidation? ( pp. 612 613 ) on the first one it would stay the same because if you add all their numbers it comes to 80,000
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Unformatted text preview: 2. After selling the assets and paying the liabilities, the partnership has cash of \$50,000. How much cash will each partner receive in final liquidation? ( pp. 612 – 614 ) this one there is a loss of 30,000 and each one would lose a third so it would be 10,000 loss so ray has 23,000 you minus 10,000 he gets 13,000 then you have scott he has 28,000 and you minus 10,000 and that is 18,000 and then you have van who has 19,000 and you deduct 10,000 and he has 9,000...
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