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30 July, 01:35

Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $60,000, and both partners agree to make up any capital deficits with personal cash contributions, Partner Macki will eventually receive cash of

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  1. 30 July, 01:42
    0
    Macki capital balance = $40,000

    Macki ratio = 2

    Income and losses ratio

    = 2 + 3 = 5

    Cash to be received by Macki as a partner

    = $40,000 * 2/5

    = $16,000
  2. 30 July, 01:56
    0
    Partner Macki will eventually receive cash of $16,000

    Explanation:

    Macki has a $40,000 capital balance.

    Income and losses ratio for Macki is 2

    Total Income and losses ratio = 2 + 3 = 5

    Calculating for Macki

    Cash to be received by partner Macki

    = $40,000 * 2/5

    = $16,000
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