Question

The DSV Partnership decided to liquidate as of June 30, 20X5.

Additional Information 

1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5 follow:

2. The DSV Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized follow 

 Assume the following cash amounts were received during the months of July, August, and September from the sale of DSV Partnership's noncash assets 

July            $390,00

August         22,000

September  55,000 

The partnership wishes to keep $10,000 of cash on hand at the end of both July and August to pay for unexpected liquidation expenses. It paid liquidation expenses of $2,500 at the end of each month, July, August, and September. D, S, and V share profits and losses in the ratio 50:30:20, respectively. 

Required 

a. Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. 

b. Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. 

Answer 1