David Sam and Igor formed the CLR Partnership many years ago and have
decided to liquidate the partnership effective October 1, 2019. Although
it was agreed that Connor was the more talented accountant, the partnership agreement
stipulated that all profit and losses must be shared equally. At October 1 2019
the partnership had cash of $25,000; liabilities of $32,000 and merchandise inventory of $140,000.
The partners capital balances were $85,000; $40,000 and $8,000 respectively. The inventory
was sold for $50,000 cash and the liabilities were then paid in full. None of the partners
have the personal funds to cover any deficit in their capital accounts.
Prepare the necessary journal entries