I have two companies and am trying to close out one of them. They are related one to the other, but they are in two different states. I have almost all the accounts zeroed out but need to transfer the Inter company Accounts, and then recognize the gain on Liquidation of the company. I understand the journal entry that I need to make is as follows:
Dr. Inter company Acct
Cr. Gain on Liquidation of Co.

And the J/E in the company that I am keeping is a follows:
Dr. Loss on Liquidation of Co
Cr. Inter company accounts

I don't know exactly what account is affected in the Gain on Liquidation of the Company. It is in the P&L, but what account is that. Is that a Gain/Loss on Sale or Transfer of Assets? I am not really transferring assets. Is money that one company had borrowed from the other.

Please help!
Thank you.

Depends on how these two companies are related. Is one a subsidiary of the other? Why do you need to move the accounts?

If you have a gain on one, I think you should have the gain, not a loss, no matter how you move them.

How do you liquidate for 3 partners with ratio of 1:5:4 ratio with loss of 29,000?

Just use the 3 percentages times the loss amount. $2900, $14500, and $11600.

Move the Gain or Loss on liquidation to Shareholder Distribution account

Computation of liquidator remunaration