E16-8 cash distribution plan | Accounting homework help
E16-8 Cash Distribution Plan
Adams, peters, and Blake share Profits and losses for their APB Partnership in a ratio of 2:3:5.
When they decide to liquidate, the balance sheet is as follows:
Assets
Liabilities and Equities
Cash
$40,000
Liabilities
$50,000
Adams, Loan
10,000
Adams, Capital
55,000
Other Assets
200,000
Peters, Capital
75,000
Blake, Capital
70,000
Total Assets
$250,000
Total Liabilities and Equities
$250,000
Liquidation expenses are expected to be negligible, No interest accrues on loans with partners after termination of the business.
Required: Prepare a cash distribution plan for the APB Partnership.
