- Bat4m Partnerships Liquidation 15m The Abc Partnership Is To Be Liquidated And You Have Been Hired To Prepare A Schedul 1 (66.86 KiB) Viewed 14 times
Step 1:Record the sale of the non-cash assets
Step 2: Allocate any gain or loss on realization to the partners
based on the income ratios.
Step 3: Pay partnership liabilities in cash.
Step 4: Distribute remaining cash to partners based on their
capital balances.
BAT4M Partnerships Liquidation /15m The ABC Partnership is to be liquidated and you have been hired to prepare a Schedule of Cash Payments for the partnership. Partners A, B, and C share income and losses in the ratio of 4:3:3, respectively. Assume the following: 1. The noncash assets were sold for $25,000. 2. Liabilities were paid in full. 3. The remaining cash was distributed to the partners. (If any partner has a capital deficiency, assume that the partner is unable to make up the capital deficiency.) ABC PARTNERSHIP Trial Balance Immediately Prior to Liquidation Cash $10,000 Noncash assets 60,000 Liabilities A, Capital B, Capital C, Capital $70,000 $20,000 10,000 15,000 25,000 $70,000
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