Assume that partner, Rev. Lovejoy, makes a capital contribution of $12,000, part
ID: 2623262 • Letter: A
Question
Assume that partner, Rev. Lovejoy, makes a capital contribution of $12,000, partner, Ned Flanders, makes a contribution of $6,500 and services, and partner, Seymour Skinner, makes no monetary contribution, but agrees to devote knowledge and skill to the business. Assume that the partners agree to divide the partnership profits equally. When dissolution occurs, after completion of the winding up, the partners find that the partnership has paid all of its debts except $2,800 to creditor, Springfield Loan Co., $800 to creditor, Shelbyville Loan & Trust, $200 to creditor, Moe
Explanation / Answer
As go the profits, so go the loses. They will each owe 1/3 of the debt. So the $5500 is divided three way, or $1,833.33 each. Flip a coin over the penny