Question

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Capital Cash $ 40,000 Liabilities $ 50,000 Adams, Loan 10,000 Adams, Capital 55,000 Other Assets 200,000 Peters, Capital 75,000 Blake, Capital 70,000 Total Assets $ 250,000 Total Liabilities and Equities $ 250,000 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. During the liquidation process for the APB Partnership, the following events occurred: During the first month of liquidation, noncash assets with a book value of $85,000 were sold for $65,000, and $21,000 of the liabilities were paid. During the second month, the remaining noncash assets were sold for $79,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. Cash is distributed to partners at the end of each month. Required: Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period. Please follow the practical guidelines when completing this worksheet.

Answer 1

and liguida o partner realization statement statement team B Too (10.000) Besining: (10,000) 70000 200000 75oa Loan 'A' Capilo 55000 190,00 Toow D 75000 Net Los from (56000) علم (16800) (28000) 2) (200000-14400 158000 in 2:35] ( - 42000 33800 134060 50,000 - Liabilities SHOW