Accounting for the liquidation of a partnershipThe partnership of Emir, Khan, & Chanyu...

Accounting for the liquidation of a partnership

The partnership of Emir, Khan, & Chanyu has experienced operating losses for three consecutive years. The partners—who have shared profits and losses in the ratio of Emir, 15%; Khan, 60%; and Chanyu, 25%—are liquidating the business. They ask you to analyze the effects of liquidation. They present the following condensed partnership balance sheet at December 31, end of the current year:

Requirement

1. Journalize the liquidation transactions.