Question

This is the post-closing trial balance for JKL Company just prior to liquidation. All balances are normal.

Assets: Cash $16,000; Accounts receivable $35,000; Equipment $86,000; Accumulated Depreciation $52,000.
Liabilities and equity: Accounts payable $43,000; John's Capital $16,000; Kirk's Capital $14,000; Lance's Capital $12,000.

John, Kirk and Lance share profit and loss on a 3:2:3 ratio. Noncash assets were sold for $53,000, the resulting gain or loss was allocated to the partners and the liabilities paid. When the remaining cash is distributed to the partners, John will receive

Answer 1

John will receive $12,000.