Cash distribution plan for Lin,Mary, and Nell partnership

Vulnerability ranks

Capital balances equity in partnership

Lin $ 55,000 $ 55,000

Mary $ 12,000 $ 12,000

Nell $ 20,000 $ 20,000

$ 87,000 $ 87,000

schedule of assumed loss absorbtion

lin

predistribution equities $ 55,000

assumed loss to absorb mary's

equity 50/30/20 $ 20,000

35000

assumed loss absorb nells

equity 50/20 -30000

5000
cash distribution plan
priority creditors
first 55000 100%
next 5000
next 42000
remainder
Profit and lss rtio Loss absorption vulnability rank Dee, Ema, Ly
Schedule of Sa
50 $ 110,000 3 For Janu

Possible loss
30 $ 40,000 1
20 $ 100,000 2 Partner’s equity
Possible loss of
395,000
noncash assets

Possible loss on
20,000
contingency
mary nell total
Possible loss
$ 12,000 $ 20,000 $ 87,000 from lyn

Possible loss
$ 12,000 $ 8,000 from geo
-40000
0 12000 47000
Journal Entry
Cash
-12000 Cash
-42000 Acc. Rec
5000 Dee Cap
 Ema Cap
Lyn Cap
lin mary nell Geo Cap
Inventory
100%
05/07. 2/7.
50% 30% 20% Cash
Dee Capital
Land
Ema Capital
Dee Cap
Cash
Ema Cap
Lyn Cap
Geo Cap
 Dee, Ema, Lyn, and Geo
Schedule of Safe Payments
For January 31,

Dee Capital Ema Capital Lyn Capital Geo Capital

164,000 87,000 175,000 92,000

-79,000 -39,500 -197,500 -79,000

85,000 47,500 -22,500 13,000
-4,000 -2,000 -10,000 -4,000
81,000 45,500 -32,500 9,000
-13,000 -6,500 32,500 -13,000
68,000 39,000 0 -4,000
-2,667 -1,333 4,000

65,333 37,667 0

$ 28,000
$ 45,000
$ 28,000
$ 6,000
$ 3,000
$ 15,000
$ 6,000
$ 75,000

$ 250,000
$ 65,333
$ 150,000
$ 37,667
$ 20,000
$ 103,000
$ 10,000
$ 50,000
$ 20,000