Question

In: Accounting

  Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000,...

 

Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally
 
Required:
a. Determine the amount of Samuel's deficiency
b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency

Solutions

Expert Solution

Loss on liquidation = (60000+240000)-120000 = $180000
a
Samuel's deficiency = 60000-(180000/2) = $30000
b
Amount distributed to Brian = $120000

ekkarill92 answered 2 years ago
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