Roberto Orcajada and Ryan Morales are partners who share profits and losses equally. The credit balances of their capital accounts before liquidation are 700,000 and 900,000, respectively. They decided to liquidate their partnership. They sold all the noncash assets and paid all the partnership's liabilities leaving a balance of 1,100,000 in cash. 1. How much cash is distributed to Orcajada? 2. What is the amount of loss or gain in realization?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
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Roberto Orcajada and Ryan Morales are partners who share profits and losses equally. The credit balances of their capital accounts before liquidation are 700,000 and 900,000, respectively. They decided to liquidate their partnership. They sold all the noncash assets and paid all the partnership's liabilities leaving a balance of 1,100,000 in cash.

1. How much cash is distributed to Orcajada?

2. What is the amount of loss or gain in realization?

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