Everett, Miguel, and Ramona are partners, sharing income 1:2:3. After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Everett, $50,000 Cr.; Miguel, $40,000 Dr.; and Ramona, $30,000 Cr. How much cash should be distributed to Everett assuming that Miguel pays the deficiency?

Question

Alice Drake

Business

14 May, 08:57

Everett, Miguel, and Ramona are partners, sharing income 1:2:3. After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Everett, $50,000 Cr.; Miguel, $40,000 Dr.; and Ramona, $30,000 Cr. How much cash should be distributed to Everett assuming that Miguel pays the deficiency?

+2

Answers (1)

Know the Answer?

Karissa Faulkner · Answer 1

The cash which should be distributed to Everett is $50,000

Explanation:

Since in the question, it is mentioned that the Miguel partner will pay the deficiency. It is already written in the question, so no amount will be deducted from the capital balance of Everett, and the Ramona

So, the cash which will be distributed to Evert would remain equal to the capital accounts i. e $50,000