A, B and C are partners and sharing income and loss in a 3:2:1 ratio respectively. They decided to liquidate the partnership. Before the final distribution of the remaining cash to the partners, A has a capital balance of $ (90,000), B has a capital balance of $216,000 and C has a capital balance of $144,000. Cash balance is $270,000. A paid the amount he owes the partnership. Roguired: Prepare journal entries to record the above liquidation process.
A, B and C are partners and sharing income and loss in a 3:2:1 ratio respectively. They decided to liquidate the partnership. Before the final distribution of the remaining cash to the partners, A has a capital balance of $ (90,000), B has a capital balance of $216,000 and C has a capital balance of $144,000. Cash balance is $270,000. A paid the amount he owes the partnership. Roguired: Prepare journal entries to record the above liquidation process.
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:Question 3
A, B and C are partners and sharing income and loss in a 3:2:1 ratio respectively. They decided to liquidate the partnership. Before the final distribution of the remaining
cash to the partners, A has a capital balance of $ (90,000), B has a capital balance of $216,000 and C has a capital balance of $144,000. Cash balance is $270,000. A
paid the amount he owes the partnership.
Required: Prepare journal entries to record the above liquidation process.
YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE "," BETWEEN NUMBERS:
Dr. Cash 100000
Cr. Land 100000
tho toolhar press Al T+F10 (PC) or ALT+FN+F10 (Mac).
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