The HK Partnership Is Liquidated When the Ledger Shows Henson and Kaenzig Income Ratios Are 3:2 Respectively

question 24

Essay

The HK Partnership is liquidated when the ledger shows: $$\begin{array} { l r } \text { Cash } & \$ 60,000 \\\text { Noncash Assets } & 90,000 \\\text { Liabilities } & 44,000 \\\text { Howell, Capital } & 100,000 \\\text { Kenton, Capital } & 6,000\end{array}$$ Henson and Kaenzig income ratios are 3:2 respectively.
Instructions
Prepare a schedule of cash payments assuming that the noncash assets were sold for $65000. Assume that any partner's capital deficiencies cannot be paid to the partnership.

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Definitions:

Preexisting Duty

An obligation or duty that already exists under a contract, and performing it, therefore, does not constitute consideration for a new promise.

Law

Rules devised and applied by institutions of society or the government to modulate behavior.

Legally Sufficient Value

An acceptable form or measure of value that must be provided in a contract to make it binding and enforceable under law.

Consideration

Something of value (such as money, goods, services, or promised actions) that is exchanged between parties in a contractual agreement.