The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.The furniture
And the equipment were sold at a cumulative loss of $4000.The accounts receivable were collected in full 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?

Question

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below.  Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.The furniture
And the equipment were sold at a cumulative loss of $4000.The accounts receivable were collected in full 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?

Quizplus · Accepted Answer

11ea8a75_431c_d13c_a2a1_132c47576b2a_TB6701_00 11ea8a75_431c_f84d_a2a1_bd8b3d155179_TB6701_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's Partnership as of December