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R, S and T are partners of Rusty Co, a partnership firm. They decide to liquidate their business on December 31, 2019. On that date
R, S and T are partners of Rusty Co, a partnership firm. They decide to liquidate their business on December 31, 2019. On that date their capital account balances were: R-$120,000, S- 150,000 and T- $180,000. They share profits and losses in the ratio of 5:3:2 respectively. On that date their total assets excluding Cash balance amounted to $900,000 and their liabilities amounted to $500,000. The cash account balance amounted to $50,000. On liquidation the assets realized 50% of their book values. All liabilities were paid off in full. Required: Show the journal entry required before the final distribution of the balance on cash account to the remaining partners
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