Question

A local partnership is liquidating and is currently reporting the following capital balances: LO 15-1 LO 15-1 LO 15-3 LO 15-3 Barley, capital (50% share of all profits and losses) . . . . $ 44,000 Carter, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000 Desai, capital (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (24,000) Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive?

Answer 1

Answer:

Barley received $29,000 and carter received $23,000.  

Explanation:

According to the scenario, computation of the given data are as follow:-

Particular                   Barley ($) Carter ($) Desai ($)     Total($)  

Opening balance             44,000   32,000    -24,000  

Desai indicated loss in ratio(50:30=5:3)-15,000 -9,000 24,000  

Balance Remaining    29,000   23,000            0            52,000

Cash distribution of $52,000  -29,000  -23,000    0           -52,000

Balance                           0                 0            0            0

According to the analysis, Barley received $29,000 and carter received $23,000.