Determine the amounts distributable to a and b

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Use the following information for the next two cases: A and B decided to liquidate their partnership. The partnership's records show the following information:

Cash -

Non-cash assets 80,000

Total assets 80,000

Liabilities 15,000

Loan payable to Partner A 10,000

Loan payable to Partner B 17,000

A, capital (80%) 20,000

B, capital (20%) 18,000

Total liabilities and equity 80,000

Case #1: Lump-sum liquidation All the non-cash assets are sold for ?50,000. Requirement: Determine the amounts distributable to A and B in the liquidation.

Case #2: Installment liquidation The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for ?45,000.

Requirement:

Problem 1: Determine the amounts distributable to A and B after the first installment sale.

Reference no: EM132754604

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