Question

QUESTION 4 The partners of William, Noah & Annick LLP decided to liquidate on August 1, 2020. The partners share profit and losses using ratios of 25%, 45%, and 30%, respectively. The balance sheet of the partnership is as follows: William, Noah & Annick LLP Balance Sheet August 1, 2018 $ 130,000 60,000 140,000 160,000 110,000 $600,000 Accounts payable 40,000 Loan payable to Noah William, capital $200,000 Noah, capital Annick, capital Total liabilities & capital S 60,000 Cash Loan receivable from William 500,000 Other assets Total assets Total assets $600,000 The disposal of Other Assets with a carrying amount of $300,000 realized $250.000. Liquidation expenses are expected to total $40,000, Assume that any partner with a negative capital balance is insolvent. A. 30%. Prepare a schedule computing the safe cash payments that can be made to each of the partners and in total (i.e., include a total column in your schedule).

Answer 1

Particulars To Cauh To loem Receivable from William Toomer Asser Realisation All AmoumHg) Particulares Armoumrls: 60,000 By Account Payable 130,000 40000 B loam Payable" to Noch 60,000 500.000 TO Noah's Capital Alu To Liquidation Expense To Account Payable | 60,000 60,000 By William's capital Alc 40000 40000 R Realisation Assets 1250000 130.000 Rp couh O By Williaron's 72500 Io Capital Al By Noah's Capitao 130,500 By, Ammick's 87000 290.000 O capital Alch 830,000 830,000 0 Ale

Schedule Computing the daje coon Payments (Partners Capital Al Pauriculars William Noah Ammick Parnulars William Noah Annick To Realisation All 40,000 By balance bld 140000 160,000 10000 TO Realisation AK 70500 130500 870001 Realisation AUT To balance cld 20500 89,900 23000 | 60,000 140,000 220.000 10,000 140,000 220000 110000 11,786 38,357 9857 By balance bld 27500 89.500 23000 TO Cash Ale in beario of capital (27500: 89500: 23000) To bal cld 15,71451143 13143 127500 89,500 22000 27500 89,300 23000