Table 12-15
Martha, Queen and Stuart Are in the Process

question 109

Essay

Table 12-15
Martha, Queen and Stuart are in the process of liquidating their partnership. They share profits and losses in a 2:3:1 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{llll}\text { Cash } & \$ 90,000 & \text { Liabilities } & \$ 80,000 \\\text { Other assets } & 200,000 & \text { Martha, capital } & 60,000\\&&\text { Queen, capital }&110,000\\&&\text { Stuart, capital }&40,000\end{array}$ Total assets $~~~~~~~~~~ \underline{\$290.000} ~~~~~~~~~~~~$ Total liabilities and canital $~~~~~~~~~~~~~ \underline{\$290.000}$
-Refer to Table 12-15 If the other assets are sold for $230,000 calculate the amount that will be received by each of the partners upon the liquidation of the partnership.

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Definitions:

Delegation

The act of entrusting another person with responsibility and authority to perform a specific task or function that was originally one's own duty.

Assignment

The act of transferring rights, duties, or responsibilities from one party to another, commonly seen in contracts or agreements.

Delegator

The party in a contract that assigns responsibility or tasks to another party, known as the delegatee.

Delegatee

A person or entity that is delegated authority or tasks by another, typically in a legal or formal context.