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Following is a series of independent cases. In each situation ndicate the cash distribution to be made to partners at the end of the liquidation
Following is a series of independent cases. In each situation ndicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances Part A The Buarque. Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $10.000 to the partnership. Cash Liabilities Monte, loan Buarque, capital (50% of profits and losses) Monte, Capital (25%) Vinicius, capital (25%) $131,000 36,000 22.000 48,098 41, veg (26, 809) (deficit) Part B Drawdy. Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership's property. The partners have prepared the following balance sheet: Cash Drawdy, loan Noncash assets $ 21,000 6,800 152.00 Liabilities Langston, loan Drawdy, capital (40%) Langston, capital (30%) Pearl, capital (30%) Total liabilities and capital $ 48,500 9.ee 65,000 51,00 12, see $179,00 Total assets $179,888 The firm sells the noncash assets for $121.000: it will use $15,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent Port C Drawdy. Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership's property. The partners have prepared the following balance sheet: $ 40,00 Cash $ 21,888 6, ese 152, UBE Drawdy, loan Noncash assets 19.00 Liabilities Langston, loan Drawdy, capital Langston capital Pearl, capital Total liabilities and capital , 51.ca 12.See $129,08 Total assets $179,880 The firm sells the noncash assets for $121,000, it will use $7,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent. Assume that the profits and losses are split 2:44 to Drawdy. Langston, and Pean, respectively. Part D Following the liquidation of all noncash assets, the partnership of Krups, Lindau, Riedel and Schnee has the following account balances. Krups is personally insolvent. Liabilities Krups, loan Krups, capital (3a% of profits and losses) Lindau, capital (30%) Riedel, capital (20%) Schnee, capital (20%) $ 9,90 7,880 (22,000) deficit (31,80) deficit 16, eee 21, eee
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