DO IT! 3a: Partnership Liquidation- No Capital Deficiency (Solution) Gafton Company Schedule of Cash Payments Item Noncash Kale D., Croix D., Marais K., Cash + Assets Liabilities + Capital + Capital + Capital 10,000+ 85,000 = 40,000 + 15,000 + 35,000+ 5,000 Balances before liquidation Sale of noncash assets and allocation of gain New balances Pay liabilities New balances Cash distribution to partners Final balances II + + + II = 0 0 II + + 0 + + + 0 + + + + 0 + 0