Question
Can you explain this number? 52. The following balance sheet is for the partnership of Able, Bayer, and Cain which shares profits and losses in
Can you explain this number?
52. The following balance sheet is for the partnership of Able, Bayer, and Cain which shares profits and losses in the ratio of 4:4:2, respectively.
Assets |
|
Cash | $ 20,000 |
Other Assets | 180,000 |
| $ 200,000 |
Liabilities and Capital |
|
Liabilities | $ 50,000 |
Able, Capital | 37,000 |
Bayer, Capital | 65,000 |
Cain, Capital | 48,000 |
| $ 200,000 |
The original partnership was dissolved when its assets, liabilities, and capital were as shown on the above balance sheet and liquidated by selling assets in installments. The first sale of noncash assets having a book value of $90,000 realized $50,000, and all cash available after settlement with creditors was distributed. How much cash should the respective partners receive (to the nearest dollar)?
Answer is A) Able $0; Bayer $3,000; Cain $17,000.
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