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 liquidation is distributed, the capital account balances were: Nettles, $48,000 Dr.; King, $183,000 Cr.; and Tanaka, $130,000 Cr.

If Nettles is personally bankrupt and unable to pay any of the $48,000, 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

Amount of Cash Received Nettles King Tanaka Capital balances after realization -48000 183000 130000 Distribution of partner deficiency 48000 -32000 -16000 Capital balances after deficiency distribution 0 151000 114000

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