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Priya and Shreya have always shared profit and losses in a 3:1ratio. They recently decide to liquidate their partnership. A summary of account balances prior
- Priya and Shreya have always shared profit and losses in a 3:1ratio. They recently decide to liquidate their partnership. A summary of account balances prior to liquidation is:
| Cash | Equipment (net) | Accounts Payable | Priyas Capital | Shreyas Capital |
Account balances as on Dec 31, 2020 | 91,200 | 314,400 | 50,400 | 244,800 | 110,400 |
Prepare the entries to record liquidation under each of unrelated assumptions:
- Equipment is sold for 720,000.
Equipment is sold for 140,000.
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