The answer shows the possible loss is $60,000. Can you pls show how to get this

Question

The answer shows the possible loss is $60,000. Can you pls show how to get this number?

Schedule of Safe Payments to Partners Partners Maness and Joiner have decided to liquidate their business. The ledger shows the follow- ing account balances: Cash Inventory s 25,000Accounts Payable 120,000 Maness, Capital $15,000 65,000 65,000 Joiner, Capital Maness and Joiner share profits and losses in an 8:2 ratio. During the first month of liquidation, half the inventory was sold for $40,000, and $10,000 of the accounts payable was paid. During the second month, the rest of the inventory was sold for $30,000, and the remaining accounts payable were paid. Cash was distributed at the end of each month, and the liquidation was completed at the end of the second month. Required Prepare a statement of partnership realization and liquidation with a schedule of safe payments for the two-month liquidation period.

Explanation / Answer

The possible loss as per my calculation is coming to $50,000/ since the inventory which was costing total of $120,000 was sold for $70,000 I.e,($40,000+$30,000) and no other information was provided for solving this. Hence, the possible loss will be $ 50,000.

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