Dissolution of a Partnership by Liquidation

Sweetieface · #1 Nov 29, 2005, 04:45 PM

Hey can anyone help on the this question? Please

The following balance sheet information is given for the Snowbird partnership:
Snowbird Partnership
Balance Sheet
Cash 8 000 l Liabilities 22 000
Non-cash assets 39 000 l Murray, capital 7 000
l Anne, capital 10 000
l Hippo, capital 8 000
Total 47 000 l Total 47 000

The Partners share profits and losses equally.

Prepare the journal entires for liquidation assuming the non-cash assets are sold for their Balance Sheet value.

Please if anyone can help on how to do this question would be greatly
appreciated.
Thanx in advance
lizie

Apr 3, 2008, 11:03 AM

murry 7000 (34%)2380 = 4620
ann 10000 (33%)3300 = 6700
hippo 8000 (33%)2640 = 5360
all capital = 25000 * each % of partners capital for maximum total loss



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