S, T and U Are in the Process of Liquidating

question 19

Multiple Choice

S, T and U are in the process of liquidating their partnership.They have the following capital balances and profit and loss percent's:
$$\begin{array} { | l | l | l | } \hline & \text { Capital Balances } & \text { Profit/Loss Percent } \\\hline \mathrm { S } & \$ 10,000 \text { Debit } & 20 \% \\\hline \mathrm { T } & \$ 36,000 \text { Credit } & 50 \% \\\hline \mathrm { U } & \$ 12,000 \text { Credit } & 30 \% \\\hline & & \\\hline\end{array}$$ The balance sheets show cash of $10,000, non-cash assets of $28,000 and no liabilities.
Assuming no liquidation expense what safe payment could be made:

• A)$10,000 to Partners T & U
• B)Partners spilt according to ratio
• C)Partner T gets $10,000 only
• D)Partner T & U each receive $5,000

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