Cash Distribution Plan

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:
Assets Liabilities and Equities
Cash $ 40,000 Liabilities $ 50,000
Adams, Loan 10,000 Adams, Capital 55,000
Other Assets 200,000 Peters, Capital 75,000
Blake, Capital 70,000
Total Assets $250,000 Total Liabilities & Equities $250,000
Liquidation expenses are expected to be negligible. No interest accrues on loans
with partners after
termination of the business.
Required
Prepare a cash distribution plan for the APB Partnership.
E16-9 Confirmation of Cash Distribution Plan
Refer to the data in exercise E16-8. During the liquidation process for the APB
Partnership, the
following events occurred:
1. During the first month of liquidation, noncash assets with a book value of
$85,000 were sold for
$65,000, and $21,000 of the liabilities were paid.
2. During the second month, the remaining noncash assets were sold for $79,000.
The loan receivable
from Adams was collected, and the rest of the creditors were paid.
3. Cash is distributed to partners at the end of each month.
Required
Prepare a statement of partnership realization and liquidation with a schedule of
safe payments to

partners for the liquidation period