Question

have always shared incomes and losses in a 3:1 atio, plan Problem 14-78 pror to the liquidation their balance sheet appeared as follows: Liquidation of a and Olive, who have always LOS to liquidate their partnenship. just prior to the liquidation their partnenshin Poppy, Sweetbean, and Olve Balance Sheet October 15, 2011 Llabillitles 6,750 Accounts payable Assets 3 28,350 Cash Equipment (net)" 118800 Equity $45,600 Totall assets 5125 550 Emie Poppy, captal Lynn Sweetbean, captal.. 30,000 21,600 Ned Olive, capital Total equity Total labilties and equity $125,550 Accumulated depreciation- $29,000 eXcel Part 1 Under the ansumption thant the equipment is sold and the cash is distibuted to the proper parties on October 15, 2011, complete the scheduke provided bolow. Ernle Lynn Hed Equipment Accounsts Poppy, Sweetbean, Otlve, Cash Inet) Payable Capital Capital Capital Account bolances October 15, 2011 the sale, the gain or loss allocation, and the disribution of the ash in each of the following Check figures unvmelated cases a The equipment issold for 3135,000, b The auasioment&ackd for $36,380, and any partners with reuting dofncts can and do pay in d. Cath to Olve 10 a. Cash to Olive 324,840 b. Cash to Olive 114,850 С.Cash to Olve $s, 100 amount of thait doficks. Page 4

Answer the required questions below in the question posted. Also prepare the journal entry required to record the liquidation under the three cases. Show clear working.

Answer 1

Pope Sweetbean and Olive a ve partners sharing Prafit and losses-in the 'Aatio 3:1:1 st h e decide Ai乍udole Realisation Amourt to PasticularS To ecVuiprnent (net) Particulars Amount | | | 8800 | By Account s fayaele 6y loss transter to Popr Sweetbean ouve 542.40 8o9o 8090 0 4S0 118800 13 800 a 542-1 809 0 18090 Partner's Capital sweetl olive beon bean ー TO Realisation To Bad Id S4 210 1を0 18090 By Balanceb d 4s6co 30o00 21600 Cash Mc $42.T0 30000 21600 CashAc Amount 67S0 8610 | ВЧ ouve capita Mc IS420 Parficular Particula r Arnoun swee t bean ta 10 3s10 To Bulance bld To Pory's ar Cash c wilu be tallied auctomat calculation of euipment as amount of equup S420 call men 11e800 and accumulated depreciation is 29000

a) Case (a) 和γ &quǐf ment is sold foy lasooo ment l Amant fosticwlous LW N Balance, bid | 118 goo | By Bank To Profit on sale 118800 Depreualion (2900o) 84800 saleoo Profit on Sale 200 (sale proceod) iation 45 200 By Accumulotel 2400D 16 4002 らfor Cose (b) Pment is sold for soso To Bal bled g800 8 24000) 89 300 By Acc ep Los onsale -Sale equipment | 4150 1 18 80C 118800 los en ale SC ca se() Equupmentis sold f 36300 To Balbld oep on sal s3so0 sale 24000) 39800 363 00 By Acc De 2q000D 18E00s on sala 3SD ゴournal entries 巳危 135000 13S000 To Equipmentc (eeing Sale pyoceeds l Accumwated depreciation ea 2900o 24000 To eaupmenttlc (Being depreuati on applied ment Mc To PyL4 45200

2 Tounal Entries To equip ment fc Bana Sale pro Accumulated dapreciation T 24000 To eapupmenti 29000 deprecietion ornlied B e To Profit 4 loss Mc To Eauementc 47S0 Being loss transened to PAL 36300 Ce sale pryoesd 2q000 rec To Profit loss S3Soo To Eqjuipmentfc (Bcuna los trans-fered to p4LAc