The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: cash 90000 liabilities 60000 Noncash assets 300000 Henry capital 80000 Isaac capital 110000 Jacobs capital 140000 Total 390000 Total 390000 Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before Liquidating any assets, the partners determined the amount of cash for safe payments and distributed it. The noncash asets were then sold for $120,000 and the liquidation expenses of $5,000 were paid. How much of the $120,000 would be distributed to the partners? (Hint Either a predistribution plan or a schedule of safe payments would be appropriate for solving this item.)
The Henry, Isaac, and Jacobs
cash 90000 liabilities 60000
Noncash assets 300000 Henry capital 80000
Isaac capital 110000
Jacobs capital 140000
Total 390000 Total 390000
Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared
Before Liquidating any assets, the partners determined the amount of cash for safe payments and distributed it. The noncash asets were then sold for $120,000 and the liquidation expenses of $5,000 were paid. How much of the $120,000 would be distributed to the partners? (Hint Either a predistribution plan or a schedule of safe payments would be appropriate for solving this item.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
