Accounting for the liquidation of a partnership
The partnership of Driscoll, Charles, and Gavin is liquidating. Business assets, liabilities, and partners' capital balances prior to liquidation follow. The partners share profits and losses as follows: Driscoll, 20%; Charles, 30%; and Gavin, 50%.
|
DRISCOLL, CHARLES, & GAVIN
|
|
Cash
|
Noncash assets
|
Liabilities
|
Driscoll capital
|
Charles capital
|
Gavin capital
|
|
$13,000
|
$130,000
|
$80,000
|
$18,000
|
$33,000
|
$12,000
|
Requirement
1. Journalize the sale of the assets for $165,000, the payment of the liabilities, and the payment of the partners' final capital balances.