The following account balances were available for the Perry, Quincy, and Renquis

Question

The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation:

Cash                                 90,000               Liabilities                 170,000

Non cash assets             300,000             Perry Capital           70,000

                                                                         Quincy's Capital     50,000

                                                                          Renquist Capital   100,000

total                                      390,000                                                390,000

Inlcuded in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000.
All partners were solvent.

What would be the minimum amount for which the noncash assets must have been sold, in order for quincy to receive some cash from the liquidation? show work

Explanation / Answer

0.2 0.4 0.4 cash o assets liabilites Perry Quin Renq beg capital 90000 300000 170000 70000 50000 100000 max loss 1 350000 125000 250000 Assumed STEP1 -25000 -50000 -50000 -125000 Adj capital 45000 0 50000 Reown 33% 67% max loss 2 135000 0 75000 Assumed STEP2 -25000 0 -50000 -75000 20000 0 0 Adj capital :) $ 0 First pays off bills 185000 Liabili 170000 cash -90000 LiqEx 15000 95000 Next 20000 Perry 100% Next 75000 Perry 0.33 Renq 0.667 Sub 190000 From then on 191000 Perry 0.2 Renq 0.4 Quin 0.4

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