Question

Chenard, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is: CHENARD, JENNINGS, AND BLAIR PARTNERSHIP Balance Sheet December 31, 2020 Assets Liabilities and Owners' Equity Cash $45100 Liabilities $145000 Noncash assets 280000 Chenard, Capital 60000 Jennings, Capital 90300 Blair, Capital 29800 Total $325100 Total $325100 If the partnership is liquidated and the noncash assets are worthless, the creditors will look to what partner's personal assets for settlement of the creditors' claims?

Multiple Choice Question 105 Chenard, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is: CHENARD, JENNINGS, AND BLAIR PARTNERSHIP Balance Sheet December 31, 2020 Assets Liabilities and Owners' Equity. Cash $45100 Liabilities $145000 Noncash assets 280000 Chenard, Capital 60000 Jennings, Capital 90300 Blair, Capital 29800 Total $325100 Total $325100 If the partnership is liquidated and the noncash assets are worthless, the creditors will look to what partner's personal assets for settlement of the creditors' claims? O The personal assets of Partner Jennings. O The personal assets of the partners are not available for partnership debts. O The personal assets of Partners Chenard and Blair. O The personal assets of Partners Chenard, Jennings, and Blair. Click if you would like to Show Work for this question: Open Show Work

Answer 1

	Cash	Non Cash Assets	Liabilities	Chenard	Jennings	Blair
	45100	280000	-145000	-60000	-90300	-29800
Distribution of Non Cash Assets Loss		-280000		56000	84000	140000
	45100	0	-145000	-4000	-6300	110200
Cash introduced by Blair	110200					-110200
	155300	0	-145000	-4000	-6300	0
Liabilities paid off	-145000		145000
Balance	10300	0	0	-4000	-6300	0
Option B is correct.
The personal assets of the partners are not available for partnership debts.