Question - 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.