Accounting for Liquidation of partnership : A Partnership may liquidate or shut down its business. The process of liquidation is as follows: • Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio. • Pay off all outside liabilities. • Distribute the remaining cash among the partners in the ratio of their respective capital balances. To Determine: Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation: 1. Non-cash asset sold for $57,000. 2. Non-cash asset sold for $18,000.

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Answer 1

Question

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

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Answer 2

Question

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

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Answer 3

Question

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

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Answer 4

Question

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

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Answer 5

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

Answer 6

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

Answer 7

Chapter 12, Problem E12.22E

To determine

Accounting for Liquidation of partnership: A Partnership may liquidate or shut down its business. The process of liquidation is as follows:

• Sell all the assets of the partnership. The gain or loss arising from such sale is distributed among the partners in their profit sharing ratio.

• Pay off all outside liabilities.

• Distribute the remaining cash among the partners in the ratio of their respective capital balances.

To Determine:

Journal Entries for sale of non-cash assets, allocation of gain-loss on sale of assets, payment of the outstanding liabilities, and the distribution of remaining cash of partners in following situation:

1. Non-cash asset sold for $57,000.

2. Non-cash asset sold for $18,000.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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