Soledad and Winston are partners who share income in the ratio of 1:3 and have capital...
Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $51,300 and $72,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $65,500. What amount of loss on realization should be allocated to Winston?
a.$14,450
b.$28,900
c.$57,800
d.$43,350
Homework Answers
| Total Capital balances | 123300 | =51300+72000 |
| Less: Cash balance | 65500 | |
| Loss on realization | 57800 | |
| Loss on realization | 57800 | |
| X Winston's profit sharing ratio | 3/4 | |
| Loss on realization allocated to Winston | 43350 | =57800*3/4 |
| Option D $43,350 is correct |
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Soledad and Winston are partners who share income in the ratio
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