[Sweetieface]

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.
Thanks in advance
lizie

[Guest]

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

[fuwamunye]

it's kind of easy. First make the columns per title accounts and put in their balances. (assets are cash and non cash, liabilities in a single column and the 3 capitals in the equity column. Second, deduct the 39,000 non cash assets and put them into cash.
Deduct the liability and cash of 22,000 since you have to pay your creditors.
Now compute all the remaining balances. The assets=liabilities+equity should remain true in the process of liquidation.

[divinelopez68]

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