E 17-9 Statement of partnership liquidation—Partner insolvency case The partnership of Ace, Ben, Cid, and Don is dissolved on January 5, 2016, and the account balances at June 30, 2016, after all noncash assets are converted into cash, are as follows:

Debits Credits Cash $200,000 Cid capital (20%) 170,000 Don capital (10%) 80,000 Accounts payable $400,000 Ace capital (50%) 40,000 Ben capital (20%) 10,000

$450,000 $450,000 ADDITIONAL INFORMATION 1. The percentages indicated represent the relevant profit- and loss-sharing ratios.

2. Personal assets and liabilities of the partners at June 30, 2016, are as follows:

584 CHAPTER 17 Personal Assets Personal Liabilities Ace $600,000 $300,000 Ben 100,000 150,000 Cid 400,000 300,000 Don 100,000 20,000