• 1. A balance sheet for the partnership ok K, L, and M, who share profits 2:1:1, shows the following balances just before liquidation:

Cash 48000

Other Assets 238000

Liabilities 80000

K, Capital 88000

L, Capital 62000

M, Capital 56000

On the first month of liquidation, 128000 was received on the sale of certain assets. Liquidation expense of 4000 were paid, and additional liquidation expense of 3200 are withheld to anticipate payment before liquidation is completed. Creditors were paid 22400. The available cash were distributed to the partners.

The cash to be received by each partner based on the above data:

a. 56600; 28300; 28300

b. 86000; 61000; 55000

c. 29400; 32700; 26700

d. 88000; 62000; 56000

• 2. The partnership of A, B, and C reached impasse as C is no longer willing to contribute the amount of time and effort to the partnership he has previously given. The partners share profits and losses in the ratio of 3:3:4, respectively. The partners have the following capital balances prior to C's withdrawal from the partnership:

A 45000

B 35000

C 20000

Assuming the partners agree that the partnership will purchase C's interest for 32000 and will revalue the partnership based on the price C is willing to accept for his interest in the partnership, the balance of B's capital immediately after the withdrawal of C is

a. 72000

b. 39000

c. 63000

d. 44000