Question

Everett, Miguel, and Ramona are partners, sharing income 1:2:3. After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Everett, $53,600 Cr.; Miguel, $45,500 Dr.; and Ramona, $37,900 Cr. How much cash is available for distribution to the partners?

Answer 1

The amount of cash available for distribution to the partners is $46,000.

How is the amount of cash determined?

The amount of cash available for distribution to the partners is computed by summing the partners' capital balances.

From the scenario, Miguel owes the partnership $45,500.  Since Miguel has not brought in this amount, the cash available for now is $46,000.

If Miguel cannot bring in $45,500, it implies that the other two partners will share the loss in their income-sharing ratio before distributing the remaining cash.

Data and Calculations:

Partners = Everett, Miguel, and Ramona

Income-sharing ratio = 1:2:3

Capital account balances:

Everett, $53,600 Cr.

Miguel, $45,500 Dr.

Ramona, $37,900 Cr.

Total = $46,000 CR

Thus, the amount of cash available for distribution to the partners is $46,000.

Learn more about partnership liquidation at brainly.com/question/17149203

#SPJ1