Bill, Page, Larry, and Scott have decided to terminate their partnership. The pa

Question

Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows: ASSETS: Cash $100,000 Noncash assets 300,000 LIABILITIES: Payables $100,000 CAPITAL ACCOUNTS: Bill, capital $25,000 Page, capital 110,000 Larry, capital 100,000 Scott, capital 65,000 During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Page and Larry are personally solvent, but Bill and Scott are personally insolvent. The partners share profits and losses in the ratio of 3:2:1:4. Based on the preceding information, what amount will be paid out to Bill upon liquidation of the partnership? (Points : 1) $0 $25,000 $2,500 $5,000

Explanation / Answer

$ 0

Conclusion:- Nothing will be paid out to Bill upon liquidation of the partnership as he is personally insolvent.

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