The HK Partnership is liquidated when the ledger shows: $$\begin{array}{lr}\text{ Cash }& \$60,000\\ \text{ Noncash Assets }& 90,000\\ \text{ Liabilities }& 44,000\\ \text{ Howell, Capital }& 100,000\\ \text{ Kenton, Capital }& 6,000\end{array}$$ Henson and Kaenzig income ratios are 3:2 respectively.
Instructions
Prepare a schedule of cash payments assuming that the noncash assets were sold for $65000. Assume that any partner's capital deficiencies cannot be paid to the partnership.

Liquidation

The method of terminating a business and allocating its assets to those who have claims, typically happening when the business cannot pay its debts.

Noncash Assets

Assets owned by a business that are not cash, including property, equipment, and intellectual property.

Capital Deficiencies

Capital deficiencies occur when a company's financial resources and assets are not sufficient to cover its liabilities and debts.