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E16-8 Cash Distribution Plan Adams, peters, and Blake share Profits and losses for their APB Partnership in a ratio of 2:3:5

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E16-8 Cash Distribution Plan

Adams, peters, and Blake share Profits and losses for their APB Partnership in a ratio of 2:3:5.

When they decide to liquidate, the balance sheet is as follows:

  

Assets 

 

Liabilities and Equities

 

Cash 

 

$40,000 

 

Liabilities 

 

$50,000 

 

Adams, Loan

 

10,000

 

Adams, Capital

 

55,000

 

Other Assets

 

200,000

 

Peters, Capital

 

75,000

 

 

 

Blake, Capital

 

70,000

 

Total Assets 

 

$250,000 

 

Total Liabilities and   Equities

 

$250,000 

Liquidation expenses are expected to be negligible, No interest accrues on loans with partners after termination of the business.

Required: Prepare a cash distribution plan for the APB Partnership.