How much cash should be distributed to each partner

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Question - On December 1, 20X9, the partners of Tim, Williams, and Levin, who share profits and losses in the ratio of 4:4:2, decided to liquidate their partnership. On this date the partnership condensed balance sheet was as follows:

Cash

$100,000

Accounts payable

$390,000

Accounts receivable

200,000

Note payable Levin

30,000

Inventory

400,000

Tim - Capital

100,000

Goodwill

20,000

William - Capital

120,000

 

 

Levin - Capital

80,000

Total

$720,000

Total

$720,000

On December 11, 20X9 two events occurred; first, the cash sale of inventory with a book value of $200,000 was sold for $140,000. Second, receivables of $100,000 were collected and $10,000 were written off. Safe installment payments to the partners were made on the same date. How much cash should be distributed to each partner?

Reference no: EM133066833

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