3. The balance sheet for the AB Partnership is a s follow sscts Property & Plant

Question

3. The balance sheet for the AB Partnership is a s follow sscts Property & Plant oan due to A 34,000 24,000 140,000 iabilities A Capital 8,000 Capital The partners have net worth as follows Liabilities 94,000 204,000 The net worth of each partner does not include any amounts due to or from the partnership. Instructions Assume assets are sold for $206,000 after incurring liquidation expense of $8,000. After liquidation of the partnership determine how much is available to B unsatisfied personal creditors based on the following: ash ther Assets Liabilities Partner A Partner B Begin Bal iquid Exp ale of assets al ontribution Bs deficit nd Bal

Explanation / Answer

As nothing is being mentioned, so the profit/loss sharing is equal.

$('000) Cash Other Assets Liabilities Partner A Partner B Begin Bal 0 400 228 48 124 Liquid Exp & loss sharing -8 -4 -4 Sale of Assets & loss sharing 206 -400 -97 -97 Balance 198 0 228 -53 23 Liabilities paid -198 -198 Balance 0 0 30 -53 23 A's Contribution(104-94) 10 10 Liabilities paid -10 -10 ABs deficit 0 0 0 23 -23 End Balance 0 0 20 -20 0

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