Problem

Accounting for the liquidation of a partnershipRobbie, Scott, and Van are liquidating thei...

Accounting for the liquidation of a partnership

Robbie, Scott, and Van are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Robbie $41,000; Scott, $31,000; and Van, $20,000. The partnership agreement is silent on the division of profits and losses.

Requirements

1. After selling the assets and paying the liabilities, the partnership has cash of $92,000. How much cash will each partner receive in final liquidation?


2. After selling the assets and paying the liabilities, the partnership has cash of $80,000. How much cash will each partner receive in final liquidation?

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