The partnership of Ali, Bev, and Cal became insolvent during 2016, and the partnership ledger shows the following balances after all partnership assets have been converted into cash and all available cash distributed:

Profit- and loss-sharing percentages for the three partners are Ali, 30 percent; Bev, 40 percent; and Cal, 30 percent. The personal assets and liabilities of the partners are as follows:

REQUIRED:
Prepare a schedule to show the phase out of the partnership and final closing of the books if the partnership creditors recover $30,000 from Bev.

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Debit Credit Accounts payable Ali capital S 30,000 20,000 $120,000 Cal capital 70,000 $120,000 $120,000 Ali Bev Cal Personal assets Personal liabilities $60,000 50,000 0,000 $60,000 60,000 40,000