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Sand, Mell, and Rand are partners who share incomes and losses in a 1 : 4 : 5 ratio. After lengthy disagreements among the partners
Sand, Mell, and Rand are partners who share incomes and losses in a :: ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed Cash $ total other assets $; total liabilities, $; Sand, Capital, $; Mell, Capital, $; and Rand, Capital, $ The other assets were sold for $
Determine the following:
The gain or loss realized on the sale of the assets.
The balances in the partners capital accounts after the distribution of this gain or loss to the capital accounts.
Assume that if any capital deficits exist, they are not madeup How much cash will each of the partners receive in the final liquidation?
Prepare the Journal entry that will be processed for the liquidation.
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