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Prepare a statement of partnership liquidation

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Question - A partnership has the following account balances at the date of termination: Cash, $99,000; Noncash Assets, $755,000; Liabilities, $479,000; Bell, capital (50 percent of profits and losses), $175,000; Mann, capital (30 percent), $125,000; Scott, capital (20 percent), $75,000. The following transactions occur during liquidation:

Noncash assets with a book value of $595,000 are sold for $495,000 in cash.

A creditor reduces his claim against the partnership from $120,000 to $80,000, and this amount is paid in cash.

The remaining noncash assets are sold for $130,000 in cash.

The remaining liabilities of $359,000 are paid in full.

Liquidation expenses of $24,000 are paid in cash.

Cash remaining after the above transactions have occurred is distributed to the partners.

Required - Prepare a statement of partnership liquidation to determine how much cash each partner receives from the liquidation of the partnership.

Reference no: EM133078080

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