ABC Corporation currently has $7,000 in cash, $15,000 in noncash assets, and liabilities of $8,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $8,000, $2,000, and $4,000, respectively. The partners share a profit and loss ratio of 3:2:1. The noncash assets were sold for $3,000. Any capital deficiencies are absorbed by the remaining partners. Complete the liquidation chart below. Statement of Partnership Liquidation Cash Noncash Assets Liabilities Capital Adrian Batch Crenshaw Balances before realization Sale of assets and division of loss or gain Balances after realization Payment of liabilities Balances after payment of liabilities Receipt of deficiency Balances Cash distributed to partners Final balances
ABC Corporation currently has $7,000 in cash, $15,000 in noncash assets, and liabilities of $8,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $8,000, $2,000, and $4,000, respectively.
The partners share a
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Statement of Partnership Liquidation |
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Cash |
Noncash Assets |
Liabilities |
Capital |
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Adrian |
Batch |
Crenshaw |
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Balances before realization |
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Sale of assets and division of loss or gain |
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Balances after realization |
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Payment of liabilities |
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Balances after payment of liabilities |
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Receipt of deficiency |
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Balances |
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Cash distributed to partners |
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Final balances |
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