A local partnership has assets of cash of $13,000 and land worth $70,000.All liabilities have been paid and the partners are all insolvent.The partners capital accounts are as follows Roberts,$50,000,Ferry,$30,000 and Mones 3,000.The partners share profits and losses 5:3:2.If the land is sold for $45,000,how much cash will Mones receive in the final settlement?

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The total cash available after selling the land is $58,000 ($13,000 + $45,000). The total capital is $83,000 ($50,000 + $30,000 + $3,000). The loss on the land sale is $25,000 ($70,000 - $45,000), which is shared among the partners in the ratio 5:3:2. Mones' share of the loss is $5,000 (2/10 of $25,000), which exceeds his capital of $3,000, leaving him with $0.

A Local Partnership Has Assets of Cash of $13,000 and Land