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    Partnership Liquidation
    The balance sheet of the ABC partnership just prior to liquidation appears below:

    ABC PARTNERSHIP
    Balance Sheet
    December 31, 2010

    Assets Liabilities and Owners' Equity

    Cash $ 70,000 Liabilities $120,000
    Noncash assets 190,000 Agler, Capital 20,000
    Bell, Capital 80,000
    Colaw, Capital 40,000
    $260,000 $260,000

    Other information:
    1. The partners Agler, Bell, and Colaw share profits and losses in the ratio of 6:3:1.
    2. The noncash assets are sold for $140,000.
    3. The liabilities are paid in full.
    4. The remaining assets are distributed to the partners. Assume that if any partner has a capital deficiency, he will not be able to pay the amount owed to the partnership.

    Instructions
    Prepare the entries to record the liquidation of the ABC partnership.

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    https://brainmass.com/business/accounting/partnership-liquidation-276597

    Solution Preview

    Partnership Liquidation
    The balance sheet of the ABC partnership just prior to liquidation appears below:

    ABC PARTNERSHIP
    Balance Sheet
    December 31, 2010

    Assets Liabilities and Owners' Equity

    Cash $ 70,000 Liabilities $120,000
    Noncash assets 190,000 Agler, Capital 20,000
    Bell, Capital 80,000
    Colaw, Capital 40,000
    $260,000 $260,000

    Other information:
    1. The partners Agler, Bell, and Colaw share profits and losses in the ratio of 6:3:1.
    2. The noncash assets are sold for $140,000.
    3. The liabilities are paid in full.
    4. The ...

    Solution Summary

    The solution explains the calculations relating to partnership liquidation

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