Instructions

income and losses in the ratio of $2$:$2$:$1.$

Required:

Prepare a statement of partnership liquidation, covering the period November $1-30,$ for each of

the following independent assumptions:

a$.$ All of the noncash assets are sold for $$156,000$ in cash, the creditors are paid, and the

remaining cash is distributed to the partners. $*$

b$.$ All of the noncash assets are sold for $$55,320$ in cash, the creditors are paid, the partner

with the debit capital balance pays the amount owed to the firm, and the remaining cash is

distributed to the partners.$*$

$*$Be sure to complete the statement heading. Refer to the lists of Labels and Amount

Descriptions for the exact wording of the answer choices for text entries. For those boxes

in which you must enter subtracted or negative numbers $($balance deficiencies, payments,

cash distributions, divisions of loss$),$ use a minus sign. If there is no amount to be reported

for sale of assets, payment of liabilities, receipt of deficiency, or cash distribution rows, the

cell can be left blank. However, in the balance rows, a balance of zero MUST be indicated

by entering $"0".$

Assume the partner with the capital deficiency in part $($b$)$ declares bankruptcy and is unable to

pay the deficiency. Journalize the entries on Nov. $30$ to $($a$)$ allocate the partner's deficiency and

$($b$)$ distribute the remaining cash. Refer to the chart of accounts for the exact wording of the

account titles. CNOW journals do not use lines for journal explanations. Every line on a journal

page is used for debit or credit entries. CNOW journals will automatically indent a credit entry

when a credit amount is entered.

Statements of Partnership Liquidation

assets, payment of liabilities, receipt of deficiency, or cash distribution rows, the cell can be left blank. However, in the balance rows, a balance of zero MUST be indicated by entering $"$O$".$