Gain or los on sale of assets. Im not sure what to do with the $10,000 cash. How does it figure into this prob?
Sand, Mell, and Rand are partners who share incomes and losses in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the partnership. Before the liquidation, the balance sheet showed Cash ,000, total "other assets", 6,000; total liabilities, ,000; Sand, Capital, 00; Mell, Capital, ,700; and Rand, Capital, ,100. The "other assets" were sold for ,000. 1. The gain (or loss) realized on the sale of assets. 2. The balances in the partner’s capital accounts after the distribution of this gain or loss to the capital accounts. 3. Assume that if any capital deficits exist, they are not made up. how much cash will each of the partners receive in the final liquidation?