Accounting for the liquidation of a partnershipThe partnership of Driscoll, Charles, and G...

Accounting for the liquidation of a partnership

The partnership of Driscoll, Charles, and Gavin is liquidating. Business assets, liabilities, and partners’ capital balances prior to liquidation follow. The partners share profits and losses as follows: Driscoll, 20%; Charles, 30%; and Gavin, 50%.

Requirement

1. Journalize the sale of the assets for $165,000, the payment of the liabilities, and the payment of the partners’ final capital balances.