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ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of $35,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of
ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of $35,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $5,000, $8,000, and $2,000, respectively. The partners share a profit and loss ratio of 1:1:3. The noncash assets were sold for $20,000. Any capital deficiencies are resolved by a cash contribution by the deficient partner. Complete the liquidation chart below. Balances before realuation Sale of vets and dnsion of low or Balances afe realization Paymen of Jablites Balances afes paym of Sabilities Receipt of deficiency Balances Cash distributed to partners Tinal balances Cat Statement of Partnership Liquidatine Neacash Assets Liabilities Capital Adrian Batch Chaw
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