5) The balance sheet of Ryan and Peter firm as on December 31, 2014, is given be

Question

5) The balance sheet of Ryan and Peter firm as on December 31, 2014, is given below. Assets Cash Accounts Receivable Furniture Equipment Other assets Total assets $15,000 25,000 Liabilities $15,000 Accounts Payable 12,000 Other liabilities 25,000 Partner's Equity 40,000 Ryan, Capital 8,000 Peter, Capital $100,000 Total liabilities and partner's equity 30,000 30,000 $100,000 Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership with immediate effect. They sold the furniture and equipment for $70,000. Provide the correct journal entry for the sale transaction. Answer: hor 2 2014. Ewell Company purchases a piece of land from the original owner. In exchange

Explanation / Answer

Solution: The Following is the required journal entry:

Note: The sale proceeds have been divided in the Profit sharing ratio.

Particulars Amount($) Debit Amount($) Credit Ryan's capital A/C 42,000 Peter's capital A/C 28,000 Furniture and Equipment A/C 65,000 Profit on sale A/C 5,000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

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