Liquidating Partnerships—Capital Deficiency Nettles, King, and Tanaka are partne

Question

Liquidating Partnerships—Capital Deficiency

Nettles, King, and Tanaka are partners sharing income 3:2:1. After the firm's loss from liquidationis distributed, the capital account balances were: Nettles, $66,000 Dr.; King, $248,000 Cr.; and Tanaka, $176,000 Cr.

If Nettles is personally bankrupt and unable to pay any of the $66,000, what will be the amount of cash received by King and Tanaka upon liquidation? If an amount is zero, enter in 0. Use the minus sign to indicate any deficiencies.

Amount of Cash Received Nettles King Tanaka Capital balances after realization $____ $____ $____ Distribution of partner deficiency $____ $____ $____ Capital balances after deficiency distribution $____ $____ $____

Explanation / Answer

Calculation Amount of Cash Received :-

Distribution of Partner Deficiency :-

King = $66000*(2/3) = $44000

Tanaka = $66000*(1/3) = $22000

Particulars Nettles King Tanaka Capital Balances After Realization ($66000) $248000 $176000 Distribution of Partner Deficiency $66000 ($44000) ($22000) Capital Balance after Deficiency Distribution $0 $204000 $154000

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