Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.Required
(a) Determine the amount of Samuel's deficiency.
(b) Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency.

Question

Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.​Required
(a) Determine the amount of Samuel's deficiency.
(b) Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency.

Quizplus · Accepted Answer

The Answer of Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.​Required
(a) Determine the amount of Samuel's deficiency.
(b) Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency.

Prior to Liquidating Their Partnership, Samuel and Brian Had Capital