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Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash.
Enter any balance deficiencies as negative numbers using a minus sign. If an amount is zero or a blank, enter in 0.
2. Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency.
a. Journalize the entries to allocate the partner's deficiency. If an amount box does not require an entry, leave it blank.b. Journalize the entries to distribute the remaining cash. If an amount box does not require an entry, leave it blank.
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