After several years of operation, the partnership of Raimondo, Rodriguez, and Rosenfeld is being liquidated. After making closing entries on September 30, 20--, the following accounts remain open: Cash 18,000 Merchandise inventory 73,000 Other assets 157,000 Accounts payable 61,000 M. A. Raimondo, capital 50,000 M. E. Rodriguez, capital 50,000 C. R. Rosenfeld, capital 87,000 The noncash assets are sold for $275,000. Profits and losses are shared equally. Required: a. Prepare journal entries for the sale of the noncash assets on October 1. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Oct. 1 fill in the blank 37d400fbffe4f95_2 fill in the blank 37d400fbffe4f95_3 1 2 fill in the blank 37d400fbffe4f95_5 fill in the blank 37d400fbffe4f95_6 2 3 fill in the blank 37d400fbffe4f95_8 fill in the blank 37d400fbffe4f95_9 3 4 fill in the blank 37d400fbffe4f95_11 fill in the blank 37d400fbffe4f95_12 4 5 5 6 Oct. 1 fill in the blank 37d400fbffe4f95_14 fill in the blank 37d400fbffe4f95_15 6 7 fill in the blank 37d400fbffe4f95_17 fill in the blank 37d400fbffe4f95_18 7 8 fill in the blank 37d400fbffe4f95_20 fill in the blank 37d400fbffe4f95_21 8 9 fill in the blank 37d400fbffe4f95_23 fill in the blank 37d400fbffe4f95_24 9 b. Prepare journal entry for the payment of the liabilities on October 15. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Oct. 15 fill in the blank b67b2cfe8056ffe_2 fill in the blank b67b2cfe8056ffe_3 1 2 fill in the blank b67b2cfe8056ffe_5 fill in the blank b67b2cfe8056ffe_6 2 c. Prepare journal entry for the division of the remaining cash on October 20. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Oct. 20 fill in the blank bf50e5fcafed036_2 fill in the blank bf50e5fcafed036_3 1 2 fill in the blank bf50e5fcafed036_5 fill in the blank bf50e5fcafed036_6 2 3 fill in the blank bf50e5fcafed036_8 fill in the blank bf50e5fcafed036_9 3 4 fill in the blank bf50e5fcafed036_11 fill in the blank bf50e5fcafed036_12 4
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
After several years of operation, the partnership of Raimondo, Rodriguez, and Rosenfeld is being liquidated. After making closing entries on September 30, 20--, the following accounts remain open:
| Cash | 18,000 | |
| Merchandise inventory | 73,000 | |
| Other assets | 157,000 | |
| Accounts payable | 61,000 | |
| M. A. Raimondo, capital | 50,000 | |
| M. E. Rodriguez, capital | 50,000 | |
| C. R. Rosenfeld, capital | 87,000 |
The noncash assets are sold for $275,000.
Required:
a. Prepare journal entries for the sale of the noncash assets on October 1. If an amount box does not require an entry, leave it blank.
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | Oct. 1 | fill in the blank 37d400fbffe4f95_2 | fill in the blank 37d400fbffe4f95_3 | 1 | ||
| 2 | fill in the blank 37d400fbffe4f95_5 | fill in the blank 37d400fbffe4f95_6 | 2 | |||
| 3 | fill in the blank 37d400fbffe4f95_8 | fill in the blank 37d400fbffe4f95_9 | 3 | |||
| 4 | fill in the blank 37d400fbffe4f95_11 | fill in the blank 37d400fbffe4f95_12 | 4 | |||
| 5 | 5 | |||||
| 6 | Oct. 1 | fill in the blank 37d400fbffe4f95_14 | fill in the blank 37d400fbffe4f95_15 | 6 | ||
| 7 | fill in the blank 37d400fbffe4f95_17 | fill in the blank 37d400fbffe4f95_18 | 7 | |||
| 8 | fill in the blank 37d400fbffe4f95_20 | fill in the blank 37d400fbffe4f95_21 | 8 | |||
| 9 | fill in the blank 37d400fbffe4f95_23 | fill in the blank 37d400fbffe4f95_24 | 9 |
b. Prepare
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | Oct. 15 | fill in the blank b67b2cfe8056ffe_2 | fill in the blank b67b2cfe8056ffe_3 | 1 | ||
| 2 | fill in the blank b67b2cfe8056ffe_5 | fill in the blank b67b2cfe8056ffe_6 | 2 |
c. Prepare journal entry for the division of the remaining cash on October 20. If an amount box does not require an entry, leave it blank.
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | Oct. 20 | fill in the blank bf50e5fcafed036_2 | fill in the blank bf50e5fcafed036_3 | 1 | ||
| 2 | fill in the blank bf50e5fcafed036_5 | fill in the blank bf50e5fcafed036_6 | 2 | |||
| 3 | fill in the blank bf50e5fcafed036_8 | fill in the blank bf50e5fcafed036_9 | 3 | |||
| 4 | fill in the blank bf50e5fcafed036_11 | fill in the blank bf50e5fcafed036_12 | 4 |
Liquidation of partnership is a situation where the entity wound up its business by selling off all resources and pay off obligations. Any balance that remained after paying off debts will distribute among partners.
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