Question
The balance sheet of JKL Partnership prior to liquidation is as follows: Loan receivable $50,000 Loan Payable L $70,000 Other assets 200,000 Other liabilities 40,000
The balance sheet of JKL Partnership prior to liquidation is as follows:
| Loan receivable | $50,000 | Loan Payable L | $70,000 |
| Other assets | 200,000 | Other liabilities | 40,000 |
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| Capital, J | 30,000 |
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|
| Capital, K | 20,000 |
|
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| Capital L | 90,000 |
| Total | 250,000 | Total | 250,000 |
J, K and K share income in 2:2:4 ratio. During the partnership liquidation, K is able to invest $10,000in personal cash in the partnership. The other partners are unable to make any additional investment in the partnership. The other assets are sold for $80,000 in cash.
Required: Prepare a simple partnership liquidation schedule
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
