The KGB Partnership decided to liquidate the partnership as of June 30, 20X5. The balance sheet of the partnership as of this date is presented as follows:

1. According to the partnership agreement, interest on notes payable to partners does not accrue during the liquidation of the partnership.
2. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, are presented below:

The KGB Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized are presented below:

\section*{Required}
Prepare a statement of partnership realization and liquidation for the KGB Partnership for the three-month period ended September 30, 20X5. K, G, and B share profits and losses in the ratio 50:30:20, respectively. The partners wish to distribute available cash at the end of each month, after reserving \(\$ 10,000\) of cash at the end of July and August to meet unexpected liquidation expenses. Actual liquidation expenses incurred and paid each month amounted to \(\$ 2,500\). Support each cash distribution to the partners with a schedule of safe installment payments.

Transcribed Image Text:

Assets KGB Partnership Balance Sheet At June 30, 20X5 Cash $ 50.000 Accounts Receivable (net) 95.000 Inventories 75.000 Property. Plant, and Equipment (net) 500,000 $720.000 Total Assets Liabilities and Partners' Capitals Liabilities: Accounts Payable Loan Payable to G $405,000 50,000 $455,000 Total Liabilities Partners' Capitals: K. Capital G. Capital $100,000 90.000 B. Capital 75,000 Total Capital $265,000 Total Liabilities and Capital $720,000