Question

A local partnership was in the process of liquidating and reported the following capital balances: Picture Douglass indicated that the $14,000 deficit would be covered by a forthcoming contribution. However, the two remaining partners asked to receive the $31,000 that was then in the cash account. How much of this money should Justice receive

Answer 1

$15,533

Step-by-step explanation:

Calculation for How much of this money should Justice receive

Douglass' Deficit ($7,467)

[ ($14,000) * (.40/.75)]

=($14,000 *0.5333333)

=($7,467)

Add: Justice's Capital Balance $23,000

Distribution to Justice $15,533

($23,000+$7,467)

Therefore the amount of money that Justice should receive will be $15,533