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.
Be sure to show your work not just the final answer. Partial credit is awarded for your effort as well as accuracy. Showing your work demonstrates your understanding of the concept even if the final answer is incorrect.