Question

The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:

Cash	$	91,000			Accounts payable	$	96,000
Other assets		805,000			Ferris, loan		52,000
Hardwick, loan		42,000			Hardwick, capital		360,000
					Saunders, capital		220,000
					Ferris, capital		210,000
Total assets	$	938,000			Total liabilities and capital	$	938,000

The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $165,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)

Answer 1