Final settlement based problem


A local partnership has only two assets (cash of 10000 and land with a cost of 35000). All liabilities have been paid and the following capital balances are currently being recorded. The partners share profits and losses as follows. All partners are insolvent

Brown, capital 40% 25000
Fish, Capital 30% 15000
Stone, Capital 30% 5000

a. if the land sold for 15000, how much cash does each partner receive in a final settlement?

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Accounting Basics: Final settlement based problem
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