Sameer , Daoud and Narmen owned partnership has total assets of $480,000 ( cash 100000,...
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Sameer , Daoud and Narmen owned partnership has total assets of $480,000 ( cash 100000, account receivables 100000, inventory 60000, and equipment 220000). Capital balances for partners Sameer , Daoud and Narmen are $130,000, $50,000, and $120,000, respectively. The profit/loss percentages for partners Sameer , Daoud and Narmen are 50%,20%, and 30%, respectively. Included in the liabilities is a $20,000 loan payable to Sameer and in receivables loan from Daoud 10,000. The partnership has elected to liquidate over the next several months and expect to pay $20,000 as liquidation expenses. Required: Prepare vulnerability ranking, losses absorption and cash distribution plane Prepare cash distribution schedule Assuming total account receivables was sold for 80,000 in the first month, in second month equipment with a book value of $120,000 was sold for $90,000 and in the third month all inventory sold for 50,000; prepare statement of realization and liquidations with necessary entries.
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