Prepare the entries to liquidate the partnership

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Reference no: EM13711052

Q: Allocating profits and losses to the partners, accounting for the liquidation of a partnership

ABC is a partnership owned by Alders, Byron, and Calvin, who share profits and losses in the ratio of 1:3:4. The account balances of the partnership at June 30 follow.


Adjusted Trial Balance

June 30,2014

Account Title 
Cash  $ 33,000

Non-cash Assets 

Notes payable 

$ 32,000
Alders Capital

Byron Capital

Calvin Capital 

Alders withdrawals

Byron withdrawals 

Calvin withdrawals 

Sales Revenue

Salaries Expense 

Rent Expense 

Total  $ 321,000 $ 321,000


1. Prepare the June 30 entries to close the revenue, expense, income summary, and withdrawal accounts.

2. Open each partner's capital T-account with the adjusted balance, post the closing entries to their accounts, and determine each partner's ending capital balance.

3. Prepare the June 30 entries to liquidate the partnership assuming the non-cash assets are sold for $120,000.

Reference no: EM13711052

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