Prepare a statement of partnership liquidation


Response to the following problem:

After discontinuing the ordinary business operations and closing the accounts on may 7 , the ledger of the partnership of anna , brian, and cole indicated the following: cash 7.500 noncash assets 105,00 liabilities 27,500 anna capital 45,000 brian capital 15,000 cole capita 25,000 112,500 112,500 the partners share net income and losses in the ratio of 3:2:1. between may 7-30, the noncash assets were sold for 150,000, the liabilities were paid, and the remaining cash was distributed to the partners.

(A) Prepare a statement of partnership liquidation.

(B) Assume the same facts as in (A), except that the noncash were sold for 45,000 and any partner with a capital deficiency pays the amount of deficiency to the partnership. prepare a statement of partnership liquidation.

Solution Preview :

Prepared by a verified Expert
Accounting Standards: Prepare a statement of partnership liquidation
Reference No:- TGS02079782

Now Priced at $25 (50% Discount)

Recommended (90%)

Rated (4.3/5)