Question

Part C

(2021 and 2022) The trial balance of A, B, and D at December 31, 2021 after all adjustments have been made is as follows: Adjusted Balances Account Title Debit Credit Cash 83,000 Other Assets 80,000 Accounts Payable 140,000 A, Capital 7,000 B, Capital 7,000 C, Capital 9,000 163,000 163,000 On January 1, 2022 the partnership is liquidated. Other assets are sold for: $144,000 Gains and losses are liquidated in a ratio of: A 3 B 2 D 5 Required Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any partner deficiency (debit balance) is repaid with cash by the applicable partner. Prepare the journal entries to record the liquidation.

Answer 1

Partner's Capital Account

Particulars	A	B	C	Particulars	A	B	C
				By Balance c/d	7000	7000	9000
				By Profit-in the ratio 3:2:5	19200	12800	32000
Total	26200	19800	41000	Total	26200	19800	41000

A's Capital A/c -Dr. 19200

B's Capital A/c -Dr.12800

C's Capital A/c -Dr.32000

To P & L A/c 64000

(Profit has been distributed between partners)

Cash A/c -Dr.144000

To Assets A/c 80000

To Profit A/c 64000

(Assets have been sold on profit)

Accounts Payable A/c -Dr.140000

To Cash A/c 140000

(Payment made to accounts payable)