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9) 9) The partners of the Blue Tooth Partnership agree to liquidate. After all liabilities of $100,000 are paid, the capital
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9)

Account Titles and Explanation Debit Credit
Cash 4000
Peters, capital 4000
(To record cash brought in by Peter)
Wong, capital 80000
Winslow, capital 70000
Cash 150000
(To record distribution of cash)

10)

Account Titles and Explanation Debit Credit
Wong, capital 2000
Winslow, capital 2000
Peters, capital 4000
(To record deficit borne by other partners)
Wong, capital 78000
Winslow, capital 68000
Cash 146000
(To record distribution of cash)

In the absence of an agreement for sharing profits and losses, Peters' capital deficiency will be borne by Wong and Winslow equally.

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