Statement of Partnership Liquidation After closing the accounts on July 1, prior

Question

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 $31,800, $45,300, and $20,100, respectively. Cash, noncash assets, and liabilities total $51,900, $83,700, and $38,400, respectively. Between July 1 and July 29, the noncash assets are sold for $66,900, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss 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 Cash + Noncash Assets Liabilities + Capital 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

Explanation / Answer

Cash + Non cash Assets = Liabilities + Capital Gold (3/6) + Capital Porter (2/6) + Capital SIms (1/6) Balances before realization 51900 + 83700 = 38400 + 31800 + 45300 + 20100 Sale of assets and division of loss 66900 + -83700 = 0 + 8400 + 5600 + 2800 Balances after realization 118800 + 0 = 38400 + 23400 + 39700 + 17300 Payment of liabliities -38400 + 0 = -38400 + 0 + 0 + 0 Balances after payment of liablities 80400 + 0 = 0 + 23400 + 39700 + 17300 Cash distributed to partners -80400 + 0 = 0 + 40200 + 26800 + 13400 Final balances 0 + 0 = 0 + 63600 + 66500 + 30700

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