Select the best answer for each of the following items 1 In accordance with the marshaling of assets provision of the Uniform Partnership Act, rank the following liabilities of a partnership in order of payment (1) $20,000 loan from B Barry who is a partner (2) $30,000 of profits from the last year...

Select the best answer for each of the following items: 1. In accordance with the marshaling of

Question:

Select the best answer for each of the following items:
1. In accordance with the marshaling of assets provision of the Uniform Act, rank the following liabilities of a in order of payment.
(1) $20,000 loan from B. Barry who is a partner.
(2) $30,000 of profits from the last year of operations.
(3) $3,000 payable to a supplier.
(4) $100,000 in capital balances of the partners.
(a) 2,3,4,1.
(b) 4,2,1,3.
(c) 3,1,4,2.
(d) 3,1,2,4.

2. Personal assets are first allocated to creditors and then to personal creditors.
(a) This statement is true.
(b) True if partner has debit balance in his/her capital account.
(c) This statement is false.

3. The following condensed is presented for the of Lisa, Lori, and Lucy, who share profits and losses in the ratio of 5:3:2, respectively:

The partners agreed to liquidate the partnership after selling the other assets. If the other assets are sold for $160,000, how much should Lisa receive upon liquidation?
(a) $37,500
(b) $38,500
(c) $40,000
(d) $100,000

Questions 4 and 5 are based on the following balance sheet for the partnership of Allen, Bob, and Cecil:

Figures shown parenthetically reflect agreed profit and loss sharing percentages.

4. If the firm, as shown on the original balance sheet, is dissolved and liquidated by selling assets in installments, the first sale of noncash assets having a book value of $90,000 realizes $50,000, and all cash available after settlement with creditors is distributed, the respective partners would receive (to the nearest dollar)
(a) Allen, $8,000; Bob, $6,000; Cecil, $6,000.
(b) Allen, $6,667; Bob, $6,667; Cecil, $6,666.
(c) Allen, $0; Bob, $10,000; Cecil, $10,000.
(d) Allen, $0; Bob, $18,500; Cecil, $1,500.

5. If the facts are as in item 4 above except that $3,000 cash is to be withheld, the respective partners would then receive (to the nearest dollar)
(a) Allen, $6,800; Bob, $5,100; Cecil, $5,100.
(b) Allen, $5,667; Bob, $5,667; Cecil, $5,666.
(c) Allen, $0; Bob, $8,500; Cecil, $8,500.
(d) Allen, $0; Bob, $17,000; Cecil,$0.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...