All. Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(20,000). Basel has a capital balance of $48,000, and Ziad has a capital balance of $72,000. Also, cash balance is $100,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital 10,000 Ziad Capital 15,000 20,000 38,000 Basel capital Ziad capital Cash 62,000 100,000 OB Basel Capital 8,000 Ziad Capital 12,000 All Capital 20,000 Basel capital 36,000 64,000 Ziad capital Cash 100,000 OC Basel Capital 12,000 Ziad Capital 8,000 20,000 Basel capital 36,000 Ziad capital Cash 64,000 100,000 All Capital All Capital

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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All, Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash
to the partners, All has a capital balance of $(20,000), Basel has a capital balance of $48.000, and Ziad has a capital balance of $72,000. Also, cash
balance is $100,000. All is NOT able to pay the amount he owes the partnership.
Which of the following two journal entries are right to record this liquidation case?
OA Basel Capital
Ziad Capital
10,000
15,000
All Capital
20,000
Basel capital
38,000
62,000
Ziad capital
Cash
100,000
OB Basel Capital
8,000
Ziad Capital
12,000
20,000
36,000
Basel capital
Ziad capital
Cash
64,000
100,000
OC. Basel Capital
12,000
Ziad Capital
8,000
20,000
36,000
Basel capital
Ziad capital
64,000
Cash
100,000
All Capital
All Capital
SAMU
Transcribed Image Text:All, Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners, All has a capital balance of $(20,000), Basel has a capital balance of $48.000, and Ziad has a capital balance of $72,000. Also, cash balance is $100,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital Ziad Capital 10,000 15,000 All Capital 20,000 Basel capital 38,000 62,000 Ziad capital Cash 100,000 OB Basel Capital 8,000 Ziad Capital 12,000 20,000 36,000 Basel capital Ziad capital Cash 64,000 100,000 OC. Basel Capital 12,000 Ziad Capital 8,000 20,000 36,000 Basel capital Ziad capital 64,000 Cash 100,000 All Capital All Capital SAMU
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