Ch 12-3 Exercises and Problems i Statement of Partnership Liquidation After clos

Question

Ch 12-3 Exercises and Problems i 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 $27,900, $39,600, and $17,700, respectively. Cash, noncash assets, and liabilities total $43,800, $73,200, and $31,800, respectively. Between July 1 and July 29, the noncash assets are sold for $58,800, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and oss 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 CashNoncash AssetsLiabilitiesCapital 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

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* Loss on sale of assets was 14400 , the loss allocated in 3:2:1 becomes 7200 (gold) , 4800( Porters) , 2400 (Sims)

CASH NON-CASH LIABILITIES CAPITAL GOLD CAPITAL PORTER CAPITAL SIMS Balance before realization 43800 73200 31800 27900 39600 17700 sale of assets and division of loss 58800 -73200 0 -7200 -4800 -2400 balance after relaization 102600 0 31800 20700 34800 15300 payment of liabilities -31800 0 -31800 0 0 0 balance after payment of liabilities 70800 0 0 20700 34800 15300 cash ditributed to partners -70800 -20700 -34800 -15300 Final balance 0 0 0 0 0

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