In: Accounting
Prior to liquidating their partnership, Perkins and Montgomery had capital accounts of $73,000 and $125,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $190,000. The partnership had $8,000 of liabilities. Perkins and Montgomery share income and losses equally. Determine the amount received by Perkins as a final distribution from liquidation of the partnership.
Particulars | Total Assets | Total Laibilites | Perkins Capital | Montgomery Capital |
50% | 50% | |||
Balances After Liquidation | 190000 | 8000 | 73000 | 125000 |
Less: First liabilities will pay | -8000 | -8000 | $ - | $ - |
Total Available Funds | 182000 | 0 | 73000 | 125000 |
Distribution of avaialble Funds in (50% ; 50% ) | -182000 | $ 91,000 | $ 91,000 | |
So the perkins will receive the final payment is $ 91,000 | ||||