Question
In: Accounting
Harding, Jones, and Sandy are in the process of liquidating and the partners have the following capital balances; $24,000, $24,000, and ($9,000) respectively.
Harding, Jones, and Sandy are in the process of liquidating and the partners have the following capital balances; $24,000, $24,000, and ($9,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Sandy has indicated that the ($9,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested to immediately receive $20,000 in cash that is available. How should this cash be distributed?
Solutions
Expert Solution
Hanson | James | Smith |
24,000 | 24,000 | -9000 |
16% | 48% | 36% |
-9000 | ||
20,000 | ||
16/(16+48%)=25.00% | 48/(16+48%)=75.00% | |
24,000 + 24,000 + 20,000 =68,000 | ||
68,000*25%=17,000 | 68,000*75%=51,000 | |
24,000+24,000= 48,000 | ||
51,000-48,000=3,000 |
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