Question

The balance sheet given below is presented for the partnership of Janet, Anton, and Millet: Cash $60,000 Liabilities $80,000 Other Assets 150,000 Janet, Capital 80,000 Anton, Capital 30,000 Millet, Capital 20,000 Total 210,000 Total 210,000 The partners share profits and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after selling the other assets for $50,000. On dissolution of the partnership, Janet should receive:

Answer 1

Answer:

Janet will receive=$30,000

Explanation:

According to the information of the exercise, consider the following calculations.

Step 1. Total net assets realized=(60,000+50,000)=$110,000

Step 2. Less : liabilities paid=$80,000

Step 3. Remaining balance=$30000

Hence Janet will receive=$30,000