The balance sheet of A, B, and C Partnership is shown below. The partnership has decided to liquidate. The general ledger shows the following balances on March 1, 2016:
|
Cash |
$ 10,000 |
|
Other assets |
125,000 |
|
Accounts payable |
10,000 |
|
A, capital |
25,000 |
|
B, capital |
37,500 |
|
C, capital |
62,500 |
Proceeds from the sale of non-cash assets during March were $42,500.
Required:
- Prepare a statement of partnership liquidation for the month ending March 31, 2016. Assume profits and losses are shared equally and that any capital deficiency is absorbed by the other partners.
- Prepare the journal entries to record the dissolution. Dates are not required.
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