Question

A local partnership is liquidating and is currently reporting the following capital balances: LO 15-1 LO 15-1 LO 15-3 LO 15-3 Barley, capital (50% share of all profits and losses) . . . . $ 44,000 Carter, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000 Desai, capital (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (24,000) Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive?

Answer 1

Barley received $29,000 and carter received $23,000.

Step-by-step explanation:

According to the scenario, computation of the given data are as follow:-

Particular Barley ($) Carter ($) Desai ($) Total($)

Opening balance 44,000 32,000 -24,000

Desai indicated loss in ratio(50:30=5:3)-15,000 -9,000 24,000

Balance Remaining 29,000 23,000 0 52,000

Cash distribution of $52,000 -29,000 -23,000 0 -52,000

Balance 0 0 0 0

According to the analysis, Barley received $29,000 and carter received $23,000.