Harry Tony and Liza run a partnership firm In the process of

Harry, Tony, and Liza run a partnership firm. In the process of liquidation, the partnership sells

nonminuscash assets, having a book value of $78,000, for $86,000. Which of the following is true of the journal entries?

A.

Nonminuscash

assets will be credited for $86,000.

B.

Nonminuscash

assets will be credited for $78,000.

C.

Cash will be credited for $78,000.

D.

Cash will be credited by $8,000.

Solution

Noncash assets will be credited for $78,000. Option B is correct