Reference no: EM132793167

Question - On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available:

Cash 80,000

Accounts receivable 240,000

Inventory 480,000

Equipment 1,200,000

Total 2,000,000

Accounts payable 600,000

A, Capital (20%) 200,000

B, Capital (30%) 400,000

C, Capital (50%) 800,000

Total 2,000,000

The net proceeds from the sale of non-cash assets amounted to 160,000. The personal assets and personal liabilities of the partners are as follows:

A B C

Personal assets 1,200,000 1,040,000 800,000

Personal liabilities (880,000) (880,000) (1,280,000)

Required -

How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?

How much did A receive from the settlement of his interest in the partnership?