Question
Please show what the Receipt of deficiency balances would be!!!!!!!!!!!! ^^^^^^^ DUE TONIGHT!! Please show RECEIPT OF DEFICIENCY BALANCES!!! After discontinuing the ordinary business operations
Please show what the Receipt of deficiency balances would be!!!!!!!!!!!!
^^^^^^^ DUE TONIGHT!! Please show RECEIPT OF DEFICIENCY BALANCES!!!
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:
Cash | $ 7,500 | |
Noncash Assets | 105,000 | |
Liabilities | $ 27,500 | |
Anna, Capital | 45,000 | |
Brian, Capital | 15,000 | |
Cole, Capital |
| 25,000 |
$112,500 | $112,500 |
The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.
Please show what the Receipt of deficiency balances would be!!!!!!!!!!!!
(a) | Prepare a statement of partnership liquidation. |
Capital | ||||||||
Noncash | Anna | Brian | Cole | |||||
Cash + | Assets = | Liabilities + | + | + | ||||
Balances before realization | 7,500.00 | |||||||
Sale of assets and division of gain | 1,50,000.00 | |||||||
Balances after realization | 1,57,500.00 | |||||||
Payment of liabilities | -27,500.00 | |||||||
Balances after payment of liabilities | 1,30,000.00 | |||||||
Receipt of deficiency | ||||||||
Balances | 1,30,000.00 | |||||||
Cash distributed to partners | -1,30,000.00 | |||||||
Final balances | - |
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