The partnership is not going well, and Tribbs, Bob, and Paul decide to liquidate the partnership. Paul is a little concerned. While Tribbs has plenty of money, Bob is personally insolvent. The partnership sells the apartment building for $165,000, which is a loss from its book value of $189,000.
Using the attached balances, show the sale of the apartment building, payment of liabilities, and payments to the partners in liquidation of the partnership.
In the memo, comment on Bob's status in relation to the other partners.
See the attached Excel for the liquidation table.
The personal insolvency of Bob, has several implications to the partnership liquidations and to the capital balances of Tribb and Paul.
The sale of the building resulted to a loss of ...
This solution shows the calculations for the sale of the assets and balances after distribution along with a brief discussion (158 words) on the result of the distribution to provide the student the correct information to compile in to their memo.