Keaton lewis and meador share profits and losses in a ratio


PROBLEM - The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:

CASH 10000 LIABILITIES 130000

NON CASH ASSETS 300000 KEATON CAPITAL 60000

LEWIS CAPITAL 40000

MEADOR CAPITAL 80000

TOTALS 310000 TOTALS 310000

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $180,000. Liquidation expenses were $12,000.

Assume that Lewis was personally insolvent and could not contribute any assets to the partnership, while Keaton and Meador were both solvent. What amount of cash would Keaton and Meador have received from the distribution of partnership assets?

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Accounting Basics: Keaton lewis and meador share profits and losses in a ratio
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