Partnership ABC has decided to liquidate the partnership. They have given you with the given information.
Trial Balance:
Cash..................................70,000
Noncash assets...................200,000
Liabilities............................................20,000
A, Capital...........................................100,000
B, Capital...........................................120,000
C, Capital...........................................30,000
The noncash assets of the business were sold for $250,000. The resulting gain was divided in a ratio of 1:2:2.
a) Give a statement of partnership liquidation.
b) Give the journal entries to record the sale of assets, the division of the gain, the payment of liabilities and the division of cash.