2. PR.12-05.ALGO (Algorithmic) Statement of Partnership Liquidation After the ac

Question

2. PR.12-05.ALGO (Algorithmic) Statement of Partnership Liquidation After the accounts are c and Ambe respectively. Amounts owed to creditors total $10,800. The partners share income and losses in the ratio of 1:1:2. B and the liabilities are paid. Required: accounts are dlosed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fa r Howard are $42,600, $7,800, and $33,500, respectively. Cash and noncash assets total $10,400 and rchild, $84,300, partnership, 130, the noncash assets are sold for $44,700, the partner with the capital deficency pays the deficiency to the Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss,(b) the payment of lablities (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash.

Explanation / Answer

1.

2. a.

  

2.b.

Working:

Ref. Item Cash Nocn cash Liabilities Capital Assets Fairchild Lowes Howard Beginning balance 10400 84300 10800 42600 7800 33500 a Sale of assets 44700 -84300 -9900 -9900 -19800 Balance 55100 0 10800 32700 -2100 13700 b Amount paid by Lowes 2100 2100 Balance 57200 0 10800 32700 0 13700 c Payment to creditors -10800 -10800 Balance 46400 0 0 32700 0 13700 d Distributed as per capitals -46400 -32700 -13700 Balance 0 0 0 0 0 0

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.