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As of January 1, 2011, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses:
Cash 80,000non cash assets 205,000liabilities 47,000canton, capital (30%) 138,000Yulls, capital (40%) 119,500Garr, capital (30%) -19,500The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000.
How much of the existing cash balance could be distributed safely to partners at this time?
5 accounting techniques
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