Question

Saved Quiz Partll i Help Save & Exit Subm Check my work Required information The following information applies to the questions displayed below. Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership Immediately before liquidation, the partnership balance sheet shows total assets, $142,800; total liabilities, $92,000: Turner, Capital, $3,900; Roth, Capital, $14.700; and Lowe, Capital, $32,200. The cash proceeds from selling the assets were sufficient to repay all but $35,000 to the creditors. Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency Complete this question by entering your answers in the tabs below. Required A Required B Required

Answer 1

1)	Computation of loss from selling of assets
	Liabilities before liquidation					$   92,000.00
	Proceeds from sale of assets (paid to creditors)					$   57,000.00	(bal. fig)
	Remaining liabilities					$   35,000.00
	Proceeds from sale of assets					$   57,000.00
	Book value of assets sold					$ 142,800.00
	Loss on sale of assets					$ (85,800.00)

2)	Allocation of losses
	Turner	($ 85800 x 1/10)		$    8,580.00
	Roth	($ 85800 x 4/10)		$ 34,320.00
	Lowe	($ 85800 x 5/10)		$ 42,900.00

3)	Particulars		Turner	Roth	Lowe
	Initial capital balance		$ 3,900.00	$ 14,700.00	$ 32,200.00
	Loss on sale		$(8,580.00)	$(34,320.00)	$(42,900.00)
	Contribution Required		$(4,680.00)	$(19,620.00)	$(10,700.00)