The partnership of Donald, Healey \& Jaguar has experienced operating losses. The partners-who have shared profits and losses in the ratio of Donald, \(10 \%\); Healey, \(30 \%\); and Jaguar, \(60 \%\)-are liquidating the business. They ask you to analyze the effects of liquidation and present the following partnership balance sheet at December 31, end of the current year:

Requirements 

1. Prepare a summary of liquidation transactions (as illustrated in Exhibit 12-5). The noncash assets are sold for \(\$ 192,000\). 

2. Journalize the liquidation transactions. 

Exhibit 12-5

Transcribed Image Text:

Cash $ 27.000 Liabilities Noncash assets 202,000 Donald, capital Healey, capital $131,000 21.000 39,000 Jaguar, capital 38,000 Total assets $229.000 Total liabilities and capital $229.000