Question

Statement of Partnership Liquidation

After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $36,000, $51,000, and $22,800, respectively. Cash, noncash assets, and liabilities total $57,300, $94,500, and $42,000, respectively. Between July 1 and July 29, the noncash assets are sold for $75,300, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.

Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0".

Gold, Porter, and Sims
Statement of Partnership Liquidation
For the Period Ending July 1-29
	Cash +	Noncash Assets =	Liabilities +	Capital Gold (3/6) +	Capital Porter (2/6) +	Capital Sims (1/6)
Balances before realization	$	$	$	$	$	$
Sale of assets and division of loss	+
Balances after realization	$	$	$	$	$	$
Payment of liabilities
Balances after payment of liabilities	$	$	$	$	$	$
Cash distributed to partners
Final balances	$	$	$	$	$	$

Answer 1

Gold, Porter, and Sims
Statement of Partnership Liquidation
For the Period Ending July 1-29
	Cash +	Non-cash Assets =	Liabilities +	Capital Gold (3/6) +	Capital Porter (2/6) +	Capital Sims (1/6)
Balances before realization	$57,300	$94,500	$42,000	$36,000	$51,000	$22,800
Sale of assets and division of loss	+ 75,300	(94,500)	0	(9,600)	(6,400)	(3,200)
Balances after realization	$132,600	$0	$42,000	$26,400	$44,600	$19,600
Payment of liabilities	(42,000)	0	(42,000)	0	0	0
Balances after payment of liabilities	$90,600	$0	$0	$26,400	$44,600	$19,600
Adjustment of excess & deficiency	0	0	0	18,900	(14,400)	(4,500)
Balances	90,600	0	0	45,300	30,200	15,100
Cash distributed to partners	(90,600)	0	0	(45,300)	(30,200)	(15,100)
Final Balances	0	0	0	0	0	0