Esper, Ester, Ethel and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to creditors and liquidation is authorized on September 30, 2012. A statement of financial position for the partnership on this date shows balances as follows: Cash 90,000 Liabilities 265,000 Other Assets 400,000 Elmer, Loan 25,000 Esper, Capital 50,000 Ester, Capital 50,000 Ethel, Capital 50,000 Elmer, Capital 50,000 Total Assets 490,000 Total Liabilities and Capital 490,000 The personal status of partners on this date is determined to be as follows: Partners Personal Assets Personal Liabilities Esper 250,000 150,000 Ester 100,000 150,000 Ethel 150,000 125,000 Elmer 200,000 250,000 The Other Assets of the partnership are sold and realized for 120,000. Additional contributions by appropriate parties in meeting the claims of firm creditors were made.
Esper, Ester, Ethel and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to creditors and liquidation is authorized on September 30, 2012. A statement of financial position for the partnership on this date shows balances as follows: Cash 90,000 Liabilities 265,000 Other Assets 400,000 Elmer, Loan 25,000 Esper, Capital 50,000 Ester, Capital 50,000 Ethel, Capital 50,000 Elmer, Capital 50,000 Total Assets 490,000 Total Liabilities and Capital 490,000 The personal status of partners on this date is determined to be as follows: Partners Personal Assets Personal Liabilities Esper 250,000 150,000 Ester 100,000 150,000 Ethel 150,000 125,000 Elmer 200,000 250,000 The Other Assets of the partnership are sold and realized for 120,000. Additional contributions by appropriate parties in meeting the claims of firm creditors were made.
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
The amount that will be paid to the personal creditors of Esper would be
![Esper, Ester, Ethel and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to
creditors and liquidation is authorized on September 30, 2012. A statement of financial position for the
partnership on this date shows balances as follows:
Cash
90,000
Liabilities
265,000
Other
Assets
400,000
Elmer, Loan
25,000
Esper, Capital
50,000
Ester, Capital
50,000
Ethel, Capital
50,000
Elmer, Capital
50,000
Total
Assets
490,000
Total Liabilities and Capital
490,000
The personal status of partners on this date is determined to be as follows:
Partners
Personal Assets
Personal Liabilities
Esper
250,000
150,000
Ester
100,000
150,000
Ethel
150,000
125,000
Elmer
200,000
250,000
The Other Assets of the partnership are sold and realized for 120,000.
Additional contributions by appropriate parties in meeting the claims of firm creditors were made.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1967594d-78c9-4004-9527-fefb53277697%2Faace8363-56d3-41bf-84d2-8ae03256fcd1%2Fhm654b_processed.png&w=3840&q=75)
Transcribed Image Text:Esper, Ester, Ethel and Elmer share profits in the ratio of 2:1:1:1. The partnership cannot meet its obligations to
creditors and liquidation is authorized on September 30, 2012. A statement of financial position for the
partnership on this date shows balances as follows:
Cash
90,000
Liabilities
265,000
Other
Assets
400,000
Elmer, Loan
25,000
Esper, Capital
50,000
Ester, Capital
50,000
Ethel, Capital
50,000
Elmer, Capital
50,000
Total
Assets
490,000
Total Liabilities and Capital
490,000
The personal status of partners on this date is determined to be as follows:
Partners
Personal Assets
Personal Liabilities
Esper
250,000
150,000
Ester
100,000
150,000
Ethel
150,000
125,000
Elmer
200,000
250,000
The Other Assets of the partnership are sold and realized for 120,000.
Additional contributions by appropriate parties in meeting the claims of firm creditors were made.
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