A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits...
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
| Bell, capital | $ | 70,000 |
| Hardy, capital | 64,000 | |
| Dennard, capital | 12,000 | |
| Suddath, capital | 88,000 | |
Bell’s creditors have filed a $29,000 claim against the partnership’s assets. The partnership currently holds assets of $380,000 and liabilities of $146,000. If the assets can be sold for $230,000, what is the minimum amount that Bell’s creditors would receive?
rev: 11_27_2017_QC_CS-110177
Multiple Choice
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$2,800
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$10,000
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$0
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$1,000
Homework Answers
Loss on sale of assets,
Allocation for loss in capital and after allocation balance to each capital partner,
As per above working Bells creditor will get only $ 10000/-.
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