Problem

Cash Distribution PlanAdams, Peters, and Blake share profits and losses for their APB Part...

Cash Distribution Plan

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 Equities

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.

Required

Prepare a cash distribution plan for the APB Partnership.

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