Question

a local partnership was in the process of liquidating and reported the following capital account balances: justice, capital (40% share of all profits and losses) $ 23,000 zobart, capital (35%) 22,000 douglass, capital (25%) (14,000 ) douglass indicated that the $14,000 deficit would be covered by a forthcoming contribution. however, the two remaining partners asked to receive the $31,000 that was then in the cash account. how much of this money should zobart receive?

Answer 1

Based on the capital account balances and the amount in the cash account, the amount that Zobart will receive is $15,467.

What will Zobart receive?

The amount that Zobart will receive can be found by the formula:

= (Deficit x percentage in partnership/ 75%) + Capital account balance

Solving for the amount going to Zobart gives:

= (14,000 x 35%/75%) + 22,000

= $15,467

In conclusion, the amount to Zobart is $15,467.

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