LIQUIDATION

Due to financial difficulty, partners G, H, and I decided to liquidate. The following balances are before

liquidation: Capital balances of G, H, and I are 10,000, 25,000 and 20,000 respectively; Loan from G

is 25,000; Cash 25,000; Profit and Loss ratio 30:35:35 respectively.

Partner H received 10,650 upon liquidation and the share of the liquidation expenses of partner

G is 1,800. Meanwhile the cash available after realizing the non-cash asset and paying liquidation

expenses is 69,000.

7. What is the amount received by Partner G?

a. 5,650

b. 0

c. 22,700

d. 39,000

8. What is the amount received by all partners?

a. 25,000

b. 39,000

c. 44,000

d. 69,000

9. How much is paid to outside creditors?

a. 35,000

b. 45,000

c. 30,000

d. 40,000

10. How much is the proceeds from sale of the

noncash assets?

a. 44,000

b. 50,000

c. 69,000

d. 41,000

11. How much is the book value of the noncash

assets sold?

a. 85,000

b. 80,000

c. 86,000

d. 85,500