Professional Documents
Culture Documents
A. STATEMENT OF PARTNERSHIP
Cash
Balances before liquidation 80,000
a) Sale of non cash assets at a loss 700,000
Balances after sale 780,000
b) Payment of liabilities -750,000
Balances after payment 30,000
c) Deficiency of Master absorbed by other partners
Balances after deficiencies 30,000
d) Right of offset
Balances after offset 30,000
e) Additional investment of Miss 12,000
Balances after investment 42,000
f) Payment to Mister -42,000
0
B. Entries:
a) Cash 700,000
Miss, Capital 307,500
Mister, Capital 205,000
Master, Capital 307,500
Non Cash Asset 1,520,000
To record sale of non cash assets
e) Cash 12,000
Miss, Capital 12,000
To record additional investment
f) Mister, Loan 42,000
Cash 42,000
To record payment of due to Mister
STATEMENT OF PARTNERSHIP LIQUIDATION
Capital Balances
Non Cash Accounts Payable Loan Due to Mister Miss (3/8) Mister (2/8) Master (3/8)
1,520,000 750,000 50,000 300,000 200,000 300,000
-1,520,000 -307,500 -205,000 -307,500
0 750,000 50,000 -7,500 -5,000 -7,500
-750,000
0 50,000 -7,500 -5,000 -7,500
-4,500 -3,000 7,500
50,000 -12,000 -8,000 0
-8,000 8,000
42,000 -12,000 0
12,000
42,000 0
-42,000
0