A local partnership has assets of cash of $30,000 and land recorded at $700,000. All liabilities have been paid and the partners are all personally insolvent. The partners' capital accounts are as follows: Roberts, $500,000, Ferry, $300,000 and Mones, $30,000. The partners share profits and losses 5:3:2.If the land is sold for $450,000, how much cash will Mones receive in the final settlement?

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The total cash available after selling the land is $480,000 ($30,000 cash + $450,000 from land sale). The total capital is $830,000 ($500,000 + $300,000 + $30,000). The loss on the land sale is $250,000 ($700,000 - $450,000), which is shared among the partners as $125,000 for Roberts, $75,000 for Ferry, and $50,000 for Mones. After adjusting for the loss, Mones' capital account becomes negative ($30,000 - $50,000 = -$20,000), so Mones receives $0.

A Local Partnership Has Assets of Cash of $30,000 and Land