After closing the accounts on July 1, prior to liquidating the partnership, the

Question

After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $41,700, $59,400, and $26,400, respectively. Cash, noncash assets, and liabilities total $67,500, $110,100, and $50,100, respectively. Between July 1 and July 29, the noncash assets are sold for $87,900, 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 "0". 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 $ 67,500 $ 110,100 $ 50,100 $ 41,700 $ 59,400 $ 26,400 Sale of assets and division of loss + 87,900 -110,100 0 -20,850 -19,800 -4,400 Balances after realization $ 155,400 $ 0 $ 50,100 $ 20,850 $ 39,600 $ 22,000 Payment of liabilities -50,100 0 -50,100 0 0 0 Balances after payment of liabilities $ 105,300 $ 0 $ 0 $ 20,850 $ 39,600 $ 22,000 Cash distributed to partners -105,300 0 0 -20,850 -39,600 -22,000 Final balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Feedback

Explanation / Answer

Solution:

Gold, Porter and Sims Statement of partnership Liquidation For period ending July 1-29 Particulars Cash + Non cash assets = Liabilites + Captial gold (3/6) + Captial Porter (2/6) + Captial Sims (1/6) Balances for realization $67,500.00 $110,100.00 $50,100.00 $41,700.00 $59,400.00 $26,400.00 Sale of asset and division of loss $87,900.00 -$110,100.00 -$11,100.00 -$7,400.00 -$3,700.00 Balances after realization $155,400.00 $0.00 $50,100.00 $30,600.00 $52,000.00 $22,700.00 Payment of liabilities -$50,100.00 -$50,100.00 Balances after payment of liabilities $105,300.00 $0.00 $0.00 $30,600.00 $52,000.00 $22,700.00 Cash distributed to partners -$105,300.00 -$30,600.00 -$52,000.00 -$22,700.00 Final balances $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

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