The balance sheet of Ryan,James and Peter's partnership as of December 31,2018,is given below. Ryan,Peter,and James share profits 3:2:1.They liquidate the partnership.The furniture and equipment
Are sold at a $8000 loss.The accounts receivable were collected in full and the other assets were
Written off as worthless.The liabilities were paid off at book value.James argued that he should
Receive a portion of the remaining cash,but Ryan and Peter disagree.How much cash should James
Receive or pay?

Question

The balance sheet of Ryan,James and Peter's partnership as of December 31,2018,is given below.  Ryan,Peter,and James share profits 3:2:1.They liquidate the partnership.The furniture and equipment
Are sold at a $8000 loss.The accounts receivable were collected in full and the other assets were
Written off as worthless.The liabilities were paid off at book value.James argued that he should
Receive a portion of the remaining cash,but Ryan and Peter disagree.How much cash should James
Receive or pay?

Quizplus · Accepted Answer

11ea8a75_431d_948f_a2a1_5d8c194c82e2_TB6701_00 James has to pay $500 to meet the deficit in his capital account.
 11ea8a75_431d_bba0_a2a1_6d35d74b4331_TB6701_00

The Balance Sheet of Ryan,James and Peter's Partnership as of December