Question

Page 3 of 7 B, M, C Partnership t(2) Balance Sheet March 1, 2019 Liabilities Assets 120,000 Cash $ 60,000 40,000 100,000 200,000 Accounts Payable Account Receivable Merchandise Inventory Plant Asses( Net) 85,000 95,000 100,000 $ B Capital М Сapital C Capital $ Total Assets $ 400,000 Total Liabilities & Partner's Equity 400,000 $ The stated ratio for B, M, C are 3:3: and & 4 Required Prepare a Partnership Liquidation schedule. (1) The accounts receivable were collected for $35,000. (2) The inventory was sold for $110,000. (3) The plant assets were sold for $200,000. 4) The accounts payable were paid $120,000. b

Answer 1

The difference between the realisation and disbursement are the final amount which should be distributed to the partner as per their stated ratio. Here are the schedule:

Preparation of Partnesship Liquidation Schedule - Amocent & Amocent & from Account Realisation : 1 Collection Receivable 2 Inventory 3. Plant 35000 710,000 200,000 660,006 hen: Dis busstment Payment to Account Payable 120,000 590,000 Addi Cash Balance NET REALISATION 60,000 600,000 B 8SOTO M 95000 C 100.000 PARTNERS Capital. Amount of Capital (A) Net Realisation distributed to Partners as pes stated Ratio 303: 4 (B) 180,000 180,000 240.000 95000 95000 140,000 Gain from the Liguidation by Partnes (B-A) on Total Amocent paid to partners 180,000 780,000 240,000