Question
Compute the distribution of income and the changes in the partners' capital accounts during the year 4. On December 1, 20X9, the parthers of Tim,
Compute the distribution of income and the changes in the partners' capital accounts during the year
4. On December 1, 20X9, the parthers of Tim, Williams, and Levin, who share profits and losses in the ratio of 4:4:2, decided to liquidate their partnership. On this date the partnership condensed balance sheet was as follows:
CASH $100,000 | ACCT PAYABLE $390,000 |
Acct Receivable $200,000 | Note Payable Levin $30,000 |
Inventory $400,000 | Tim Capital $100,000 |
Goodwill $20,000 | Williams Capital $120,000 |
Levin Capital $80,000 | |
Total $720,000 | Total $720,000 |
On December 1 1, 20X9 two events occurred; first, the cash sale of inventory with a book value of $200,000 was sold for $140,000. Second, receivables of $100,000 were collected and $10,000 were written off. Safe installment payments to the partners were made on the same date. How much cash should be distributed to each partner?
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