Question

The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $24,300; other assets, $147,300; liabilities, $48,200; Morgan, capital, $58,100; Rockwell, capital, $65,300. The other assets were sold for $123,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling

Answer 1

$66,666.67

Step-by-step explanation:

The amount available for sharing is the cash and the proceeds from sales of assets minus liabilities.

= $24,300 + $123,900 - $48,200

=$148,200 - $48,200

=$100,000

Morgan and Rockwell share losses in the ratio of 2:1. meaning Morgan taken 2/3 of shareable amounts

Morgan will get

=2/3 x $100,00

=$66,666.67