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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



ekkarill92 answered 2 years ago
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