The balance sheet of Rogers, Dennis & Berry LLP prior to liquidation included the following: The three partners shared net income and losses in a 5:3:2 ratio, respectively. Noncash assets were sold for $60,000. Creditors were paid in full, partners were paid $35,000, and the balance of cash was retained pending future developments.Determine the cash to be retained and prepare a schedule to distribute $35,000 cash to the partners.

Question

The balance sheet of Rogers, Dennis & Berry LLP prior to liquidation included the following:   The three partners shared net income and losses in a 5:3:2 ratio, respectively. Noncash assets were sold for $60,000. Creditors were paid in full, partners were paid $35,000, and the balance of cash was retained pending future developments.Determine the cash to be retained and prepare a schedule to distribute $35,000 cash to the partners.

Caitie Lashbrooks · Accepted Answer

Final Answer : Cash balance = $40,000 + sale noncash assets $60,000 − paid liabilities $20,000 − partners paid $35,000 = $45,000 ending balance retained for future expenses.Distribution of $35,000:

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