I need the journal entries. P 17-6 Installment liquidation Jon, Sam, and Tad are

Question

I need the journal entries. P 17-6 Installment liquidation Jon, Sam, and Tad are partners in a furniture store that began liquidation on January 1, 2011, when the ledger contained the following account balances: Debit Credit $15,000 20,000 65,000 50,000 100,000 Cash Accounts receivable Inventories Land Buildings Accumulated depreciation-buildings Furniture and fixtures Accumulated depreciation-furniture and fixtures Accounts payable Jon capital (20%) Sam capital (30%) Tad capital (50%) $40,000 50,000 30,000 80,000 40,000 60,000 50,000 $300,000

Explanation / Answer

Journal Entries :-

Calculation for Cash :-

= $15000 + $20000 + $14000 - $40000 + $60000 + $40000 + $3000 - $40000

= $72000

Cash Distribution Ratio = 2 : 3 : 5

Month Particulars Debit($) Credit($) January Cash A/c Dr. 20000 To Inventories A/c 20000 January Cash A/c Dr. 14000 To Accounts Receivables A/c 14000 January Accounts Payable A/c Dr. 40000 To Cash A/c ($80000/2) 40000 February Cash A/c Dr. 60000 To Land A/c 40000 To Profit on Sale of Land A/c 20000 February Cash A/c Dr. 40000 Loss on Sale of Land and Building A/c Dr. 30000 To Land A/c 10000 To Building(less dep.) A/c ($100000-$40000) 60000 February Cash A/c Dr. 3000 Bad Debt A/c Dr. 3000 To Accounts Receivable A/c 6000 March Furniture and Fixtures Write off A/c Dr. 20000 Accumulated Depreciation A/c Dr. 30000 To Furniture and Fixtures A/c 50000 March Accounts Payable A/c Dr. 40000 To Cash A/c 40000 March Jon Capital A/c Dr. 14400 Sam Capital A/c Dr. 21600 Tad Capital A/c Dr. 36000 To Cash A/c 72000

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