Question

Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $126,000; total liabilities, $78,000; Turner, Capital, $2,500; Roth, Capital, $14,000; and Lowe, Capital, $31,500. Cash received from selling the assets was sufficient to repay all but $28,000 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 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 C

Calculate the loss from selling the assets.

	Liabilities before liquidation Proceeds from sale of assets (paid to creditors) Remaining liabilities $0 Proceeds from sale of assets Book value of assets sold Loss on sale of assets

Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.)

	Turner Roth Lowe Total Initial capital balances $2,500 $14,000 $31,500 $48,000 Allocation of gains (losses) 0 Capital balances after gains (losses)

Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.

	Turner Roth Lowe Total Amount to be contributed to the partnership: $0

Answer 1

(a) Calculaḥon of loss from selling of Asset 78000 50000 28000, 52000 liabalitics before liquidation. Proceeds from Sale of Asset (paid to Enolitors) Remoining liabality proceeds from Sale of Assets Look value of Asset sold 106000 loss on sale of Assets 76000, (b) Allocation of losess from Part À to the perthers Turner Roth I lowe Portal. / Chitral lopital balance peso $14000 $3,500 $48000 Allocahon of Gain / hoss -7600 1-30400-38000 76000 Capital calance. 15100 -166001 - 6500, money (1) determination of how much each partner should Contribute es una Turner Roth Lowe | Total Amount to be contributed To the portrinship, 2800 11200114000 28000 Scanned with CamScanner

hoss Mocahon of en el Partners Profit Ratio loss (676000 Turner ouver Roth Roure 4: 5. 76000x4 7600045 7600081 10 10 10 2) 7600 30400 38000 Calculation of Amount should be contributed by Posters balance birabality? 28000 Allocation based on profit Sharing Rabo . . Turner Roth Rowee 2.1 ! 4 5o S Scap?8000 0 9800 11200 14000. CamScanner