P12-31A Allocating profits and losses to the partners, accounting for the

liquidation of a partnership

ABC is a partnership owned by Alders, Byron, and Calvin, who share profits and

losses in the ratio of 1:3:4. The account balances of the partnership at June 30 follow.

Account Title

Notes Payable

Cash

Debit Credit

Non-cash Assets

Alders, Capital

Byron, Capital

Calvin, Capital

Alders, Withdrawals

Byron, Withdrawals

Calvin, Withdrawals

Sales Revenue

Salaries Expense

Rent Expense

Balance

$ 33,000

$ 321,000 $ 321,000

9,000

53,000

50,000

49,000

74,000

164,000

12,000

117,000

$ 32,000

22,000

27,000

Total

ABC

Adjusted Trial Balance

June 30, 2014

Requirements

1. Prepare the June 30 entries to close the revenue, expense, income summary, and

withdrawal accounts.

2. Open each partner