After all noncash assets have been converted to cash and all liabilities paid, A, B, and C have capital balances of $10,000 (debit), $5,000 (debit), and $25,000 (credit). The cash available for distribution to the partners is $10,000.
A. True.
B. False.

According to the nature of the equity accounts, a debit means a decrease in the balances generated within this item for the benefit of the members. On the contrary, a credit means that equity increases.

this reason, there is a total balance of capital for $ 15,000 and another for $ 25,000. If the balance of $ 25,000 is subtracted from $ 15,000, you have to:

Available cash = 25,000 - 15,000 = 10,000.

After all noncash assets have been converted to cash and all liabilities paid, A, B, and C have capital balances of $10,000 (debit), $5,000 (debit), and $25,000 (credit). The cash available for distribution to the partners is $10,000. A. True. B. False.

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After all noncash assets have been converted to cash and all liabilities paid, A, B, and C have capital balances of $10,000 (debit), $5,000 (debit), and $25,000 (credit). The cash available for distribution to the partners is $10,000.
A. True.
B. False.