The balance sheet given below is presented for the partnership of Janet, Anton, and Millet: The partners share profits and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after selling the other assets for $50,000. On dissolution of the partnership, Janet should receive:

Question

The balance sheet given below is presented for the partnership of Janet, Anton, and Millet:  The partners share profits and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after selling the other assets for $50,000. On dissolution of the partnership, Janet should receive:

Quizplus · Accepted Answer

In order to find out how much each partner will receive upon dissolution, we need to first calculate the total value of the assets that will be distributed.

Total assets = $300,000 (cash) + $100,000 (accounts receivable) + $150,000 (inventory) + $50,000 (proceeds from sale of other assets)

Total assets = $600,000

Next, we need to determine the share of each partner in the profits or losses of the partnership.

Janet's share = 5/10 = 0.5 
Anton's share = 3/10 = 0.3 
Millet's share = 2/10 = 0.2

Using these ratios, we can calculate the amount that each partner will receive:

Janet's share = 0.5 x $180,000 (partners' equity) + 0 x $50,000 (proceeds from sale of other assets) - $75,000 (partners' liabilities)

Janet's share = $30,000

Therefore, Janet will receive $30,000 upon dissolution of the partnership.

The Balance Sheet Given Below Is Presented for the Partnership