Question

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.

Answer 1

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