The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $60,000. How much will each partner receive in the liquidation?

Question

The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:  Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $60,000. How much will each partner receive in the liquidation?

Quizplus · Accepted Answer

Non-Cash Assets BV $210,000 - Cash Received $60,000 = Loss on Non-Cash Assets ($150,000) × 20% = Loss to Keaton ($30,000) - Capital Balance $90,000 = Keaton Distribution $60,000

The Keaton, Lewis, and Meador Partnership Had the Following Balance