Question

A local dental partnership has been liquidated and the final capital balances are as follows: Atkinson, capital (40% of all profits and losses) $ 73,000 Kaporale, capital (30%) 33,000 Dennsmore, capital (20%) (48,000 ) Rasputin, capital (10%) (58,000 ) If Rasputin contributes additional cash of $22,000 to the partnership, what should happen to it? (Do not round intermediate calculations.)

Answer 1

Answer :-

Particulars	Atkinson	Kaporale	Dennsmore	Rasputin
	4	3	2	1
Reported Balance	73,000	33,000	-48,000	-58,000
Capital Contribution				22,000
Adjusted balance	73,000	33,000	-48,000	-36,000
Potential Loss from Dennsmore and Rasputin spilt on the basis of 4: 3 of ($ 84,000)	-48,000	-36,000	48000	36,000
Adjusted balance	25,000	-3000	0	0
Potential Loss from Kaporale	-3000	3000
Cash Distribution	22000	0	0	0
Cash Distribution is to Atkinson $22000