Dinesh bhai Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, thebalance sheet is as follows:CashAdams, LoanOther AssetsTotal AssetsAssetsBalancesAdam's loan write-offSale of assetsPayment to creditorsPayment to partnersSale of assetsPayment to creditorsLiquidation expenses are expected to be negligible. No Interest accrues on loans with partners after termination of the business.During the liquidation process for the APB Partnership, the following events occurred:Payment to partnersBalances1. During the first month of liquidation, noncash assets with a book value of $92,500 were sold for $71,000, and $25,500 of theliabilities were paid.2. During the second month, the remaining noncash assets were sold for $77,200. The loan receivable from Adams was collected, andthe rest of the creditors were paid.3. Cash is distributed to partners at the end of each month.S$ 55,00013,000230,000Required:Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period.Please follow the practical guidelines when completing this worksheet.$$ 298,000$S$LiabilitiesAdams, CapitalPeters, CapitalBlake, CapitalTotal Liabilities and EquitiesCash55.000APB PARTNERSHIPStatement of Partnership Realization and LiquidationInstallment LiquidationAdams, Loan Noncash Assets Liabilities0(13.000)00Liabilities and Capital71.000(25,500)100,500 $ (13,000) $79,50021,000 $ (13,000) $77,200(21,000)77,200 S0$00(13,000) $077,200 $ (13,000) $230,000 $0(92,500)137,5000$137,500 $137,5000000SS46,500 S00(25.500)21,000 $021,000 $0$ 46,50071,500(21,000)97,50082,500$ 298,000000SSAdams71,500(13,000)(4,300)0$54,200(26,700)27,500 $$027,500 S27,500 SCapitalPeters97,5000S(6.450)091,050 $(49,800)41,250 $041,250$41,250 SBlake82,5000(10.750)071,750(3.000)68,75068,75068,750

It is an agreement between two or more parties to conduct the business and share the profits and…

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: Cash Adams, Loan Other Assets Total Assets Assets liabilities and Capital $ 55,000 13,000 Liabilities Adams, Capital 230,000 Peters, Capital Blake, Capital $ 298,000 Total Liabilities and Equities $ 46,500 71,500 97,500 82,500 $ 298,000

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: Cash Adams, Loan Other Assets Total Assets Assets liabilities and Capital $ 55,000 13,000 Liabilities Adams, Capital 230,000 Peters, Capital Blake, Capital $ 298,000 Total Liabilities and Equities $ 46,500 71,500 97,500 82,500 $ 298,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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