2 PR1205ALGO Algorithmic Statement of Partnership Liquidatio

2. PR.12-05.ALGO (Algorithmic) Statement of Partnership Liquidation After the accounts are c and Ambe respectively. Amounts owed to creditors total $10,800. The partners share income and losses in the ratio of 1:1:2. B and the liabilities are paid. Required: accounts are dlosed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fa r Howard are $42,600, $7,800, and $33,500, respectively. Cash and noncash assets total $10,400 and rchild, $84,300, partnership, 130, the noncash assets are sold for $44,700, the partner with the capital deficency pays the deficiency to the Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss,(b) the payment of lablities (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash.

Solution

1.

2. a.

  

2.b.

Working:

Ref.	Item	Cash	Nocn cash	Liabilities	Capital
			Assets		Fairchild	Lowes	Howard
	Beginning balance	10400	84300	10800	42600	7800	33500
a	Sale of assets	44700	-84300		-9900	-9900	-19800
	Balance	55100	0	10800	32700	-2100	13700
b	Amount paid by Lowes	2100				2100
	Balance	57200	0	10800	32700	0	13700
c	Payment to creditors	-10800		-10800
	Balance	46400	0	0	32700	0	13700
d	Distributed as per capitals	-46400			-32700		-13700
	Balance	0	0	0	0	0	0