Ch 123 Exercises and Problems i Statement of Partnership Liq

Ch 12-3 Exercises and Problems i Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $27,900, $39,600, and $17,700, respectively. Cash, noncash assets, and liabilities total $43,800, $73,200, and $31,800, respectively. Between July 1 and July 29, the noncash assets are sold for $58,800, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and oss in the ratio of 3:2:1 Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in \"O Gold, Porter, and Sims Statement of Partnership Liquidation For the Period Ending July 1-29 CashNoncash AssetsLiabilitiesCapital Gold (3/6)Capital Porter (2/6) + Capital Sims (1/6) Balances before realization Sale of assets and division of loss Balances after realization Payment of liabilities Balances after payment of liabilities Cash distributed to partners Final balances

Solution

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* Loss on sale of assets was 14400 , the loss allocated in 3:2:1 becomes 7200 (gold) , 4800( Porters) , 2400 (Sims)

	CASH	NON-CASH	LIABILITIES	CAPITAL GOLD	CAPITAL PORTER	CAPITAL SIMS
Balance before realization	43800	73200	31800	27900	39600	17700
sale of assets and division of loss	58800	-73200	0	-7200	-4800	-2400
balance after relaization	102600	0	31800	20700	34800	15300
payment of liabilities	-31800	0	-31800	0	0	0
balance after payment of liabilities	70800	0	0	20700	34800	15300
cash ditributed to partners	-70800			-20700	-34800	-15300
Final balance	0	0	0	0	0	0