How much cash will each partner receive at final liquidation

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Reference no: EM131970871

Problem

Richard and Overhill are equal partners in the R & O Roofing firm. In the process of ending the business, they sell all of the partnerships' non-cash assets. Listed below are the assets and liabilities of the business:

ASSETS: cash in Bank $10,000 Accounts receivable $6,000 Merchandise inventory $21,000 Equipment $30,000

LIABILITIES: Accounts Payable $7,750

PARTNER'S EQUITY: Richard's Capital $29,625 Overhill's Capital $29,625

LIQUIDATION TRANSACTION:

1. Complete the liquidation transactions outlined above.

2. How much cash will each partner receive at the final liquidation?

Reference no: EM131970871

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