Partnership and Bankruptcy Acc 690 119861

The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet:

Cash $16,000 Liabilities $ 150,000

Non cash assets 434,000 Abrams,capital 80,000

Bartle, capital 90,000

Creighton, capital 130,000

Total $ 450,000 Total $ 450,000

Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000.

The non cash assets were sold for $134,000. Which partner(s) would sold for $134,000. Which partner(s) would have had to contribute assets to the partnership to cover a deficit in his or her capital account?

Abrams and Creighton

Creighton

Abrams and Bartle

Bartle

Abrams