Lizza, Mary and Carrie who share in income and losses in the ratio of 2:3:5, decided to discontinue operations as of May 30, 2016, and liquidate their partnership. After the accounts were closed on May 30, 2016, the following trial balance was prepared:

Lizza, Mary and Carrie

Post - Closing Trial Balance

May 30, 2016

5/30/16
	Dr	Cr
Cash	8000
Non cash Assets	107800
Liabilities		35700
Lizza, Capital		13140
Mary, Capital		25110
Carrie, Capital		41850
	115800	115800
Between 4-1 and 4-18 the non cash assets were sold for 36800 and the liabilities were paid
Assuming that the partner with the capital deficiency pays the entire amount owed to the
partnership, prepare a statement of partnership liquidation.
Journalize the entries to record:
a. the sale of assets.
b. the division of loss on the sales of assets
c. the payment of liabilities.
d. the receipt of the deficiency
e. the distribution of cash to the partners