After the accounts are closed on September 10 2012 prior

After the accounts are closed on September 10, 2012, prior to liquidating the partnership, the
capital accounts of Randy Campbell, Ken Thayer, and Linda Tipton are $38,000, $6,400, and
$28,500, respectively. Cash and noncash assets total $17,700 and $64,200, respectively.
Amounts owed to creditors total $9,000. The partners share income and losses in the ratio of
1:1:2. Between September 10 and September 30, the noncash assets are sold for $35,000, the
partner with the capital deficiency pays his or her deficiency to the partnership, and the liabilities
are paid.Instructions1. Prepare a statement of partnership liquidation, indicating (a) The sale of
assets and division of loss, (b) The payment of liabilities, (c) The receipt of the deficiency (from
the appropriate partner), and (d) The distribution of cash.2. Assume the partner with the capital
deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entries to (a)
Allocate the partner’s deficiency and (b) Distribute the remaining cash.View Solution:
After the accounts are closed on September 10 2012 prior
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