After realization of a portion of the non cash assets of Bemis, Coppo & Dipp LLP, which was being liquidated, the capital balances were Bemis, 54,600; Coppo, 40,500; and Dipp, 17,000. Cash of 34,100 and other assets with a carrying amount of 98,000 were on hand. Creditors' claims totaled 20,000. Bemis, Coppo, and Dipp share net income and losses in a 2:1:1 ratio, respectively.
Prepare a working paper to compute the amount of cash that may be paid to creditors and to the partners at this time, assuming that no partner is solvent.
Please find files attached in excel format.
Total balance in hand
carrying value of assets 98000
creditors to be paid 20000
Therefore after paying creditors, the cash will be ...
The solution contains distribution of proceeds among the partners at the time of liquidation of firm