Acc407 Advanced Accounting: E16-8 Adams, Peters, and Blake share profits and losses for their

Acc407 Advanced Accounting
Week 1 Assignment

E16-8 Cash Distribution Plan
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows:

ASSETS LIABILITIES AND EQUITIES
Cash 40,000 Liabilities 50,000
Adams, Loan 10,000 Adams, Capital 55,000
Other Assets 200,000 Peters, Capital 75,000
Blake, Capital 70,000
Total Assets 250,000 Total Liabilities and Equities 250,000

Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business.


Required
Prepare a cash distribution plan for the APB Partnership.
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