Problem 5

A partnership held three assets:

Cash $59,000

Land. $ 45000

building. $ 64000

And Liabilities $ 30,000

The partners decided to dissolve the business and anticipated that expenses required to

liquidate their partnership would amount to $ Capital balances were as follows:

King, capital $24,000

Murphy, capital $30,000

Madison, capital $48,000

Pond, capital. $36,000

The partners shared profits and losses 10:20:30:40 respectively.

The cash on hand was used to pay the liabilities. Any remaining cash in excess of the amount needed for anticipated liquidation expenses was immediately distributed to the partners.

a. What is the total amount of cash that was immediately available to be distributed to the partners?

b. The cash (in item a.) was distributed to each partner in a single payment. Show the total payment amount to each partner. (Show the amount of the single check that was written to each partner.) Support your answer with a predistribution plan (or schedule).