INSTALLMENT LIQUIDATION: CASH DISTRIBUTION PLAN

The capital and loan balances for partners A, B and C are shown below. They share profits or losses in the ration of 4:4:2 respectively.

Loans Payable - A 100,000

Loans Payable - B 100,000

Loans Payable - C 150,000

A, Capital 150,000

B, Capital 350, 000

C, Capital 200,000

Reuired:

1. Prepare a Cash Distribution plan

2. Assume that 250,000 cash is available for initial distribution, prepare the entries to record the distribution to the partners.