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Homework answers / question archive / Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively

Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively

Accounting

Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively.

 

              Assets             Liabilities and Owner's EquityCash$  52400 Accounts payable$  125300Accounts  Granger, Capital137600receivable132300 Noble, Capital  48300Inventory  438000 Finn, Capital    311500 $622700

  $622700

 

Assume that, as part of liquidation proceedings, Granobfin sells its noncash assets for $360600. As a result, one of the partners has a capital deficiency which that partner decides not to repay. The amount of cash that would ultimately be distributed to Finn would be

 

$227620.

$311500.

$203900.

$143600.

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Particulars =Amount

Book value of assets =570300 (132300+ 438000)

Less: sale value =360600

Loss on sale =209700

Multiply: Ratio to Finn =0.4

Share of finn =83880

Capital balance =311500

Less: loss share =83880

Cash distribution =227620