Assume the Cash Account and the Partners Capital accounts after recognition of any gain / loss on the sale of the Non-Cash Assets are as follows:

P & L Ratio (3) (1) (1)

Cash A, Capital B, Capital C, Capital

Balances 40,000 20,000 30,000 (10,000)

Required: Record the Journal Entries for each of the following independent items:

a) Partner C contributes cash to the the partnership to make up for his capital deficiency.

b) Partner A & B on a pro-rata basis, absorb Partner C's deficiency

c) The Partnership pays Partners A & B on their remaining capital balances after absorbing C's negataive capital balance