The balance sheet of Ryan and Peter firm as on December 31,2017,is given below.

Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.The furniture and the equipment were sold at a cumulative loss of $4,000.The accounts receivable were received in cash and the other assets were written off as worthless.The accounts payable and other liabilities were paid off at book value.The firm's accountant distributed the remaining cash between Ryan and Peter equally.However,Peter initiated a lawsuit claiming that his share was greater than Ryan's.How much should Peter have received?
A)$20,500
B)$19,200
C)$21,800
D)$23,200

Question

The balance sheet of Ryan and Peter firm as on December 31,2017,is given below.

Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.The furniture and the equipment were sold at a cumulative loss of $4,000.The accounts receivable were received in cash and the other assets were written off as worthless.The accounts payable and other liabilities were paid off at book value.The firm's accountant distributed the remaining cash between Ryan and Peter equally.However,Peter initiated a lawsuit claiming that his share was greater than Ryan's.How much should Peter have received?
A)$20,500 
B)$19,200 
C)$21,800 
D)$23,200

Quizplus · Accepted Answer

11ea8a42_4f58_1b1c_8b44_8f1818dd0257_TB5024_00 
 11ea8a42_4f58_1b1d_8b44_334e1cafd43f_TB5024_00 The partners divide the remaining cash according to their capital balances.As a result,Peter should receive $21,800 cash and Ryan should receive $19,200 cash.

The Balance Sheet of Ryan and Peter Firm as on December