search

# The partnership of Brandon and Ryan is being liquidated All gains a

Content type
User Generated
Rating
Showing Page:
1/2
The partnership of Brandon and Ryan is being liquidated.
All gains and losses are shared in a 3:1 ratio, respectively.
Before liquidation, their balance sheet balances are as
follows:
Cash \$10,000
Other Assets 8,000
Liabilities 4,000
Brandon, Capital 7,000
Ryan, Capital 7,000
a. If the Other Assets are sold for \$10,000, how much will
each partner receive before paying liabilities and
distributing the remaining assets?
b. If the Other Assets are sold for \$8,000, how much will
each partner receive before paying liabilities and
distributing remaining assets?
Solution
(a) Total cash after sell of other assets = 10,000 + 10,000
= \$ 20,000
Each patner will be recive before paying liabilities and
distributing the remaining assets.We have,
Ist Partner = 20,000 x 3/4 = \$ 15,000
2nd Partner = 20,000 x 1/4 = \$ 5,000
(b)
Total cash after sell of other assets = 10,000 + 8,000 = \$

Showing Page:
2/2

Unformatted Attachment Preview
The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows: Cash \$10,000 Other Assets 8,000 Liabilities 4,000 Brandon, Capital 7,000 Ryan, Capital 7,000 a. If the Other Assets are sold for \$10,000, how much will each partner receive before paying liabilities and distributing the remaining assets? b. If the Other Assets are sold for \$8,000, how much will each partner receive before paying liabilities and distributing remaining assets? Solution (a) Total cash after sell o ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

### Review

Anonymous
Really helpful material, saved me a great deal of time.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4