CLICK HERE TO SAVE YOUR WORK B 9 126 17 18 11 7 The partners Cornish and Duffee share in the profits and losses equally and their capital accounts 3 have credit balances respective balances as follows: 4 Cornish, Capital 5 Duffee, Capital 6 7 "O The account balances for Cernish and Duffee immediately prior to the liquidation are: Cash Land 10 Accounts Payable 11 The land is sold for cash proceeds as follows 12 (use the account-Gain/Loss on liquidation of land) 13 14 REQUIRED 5 Prepare the journal entries for the liquidation the partnership on Dec. 31/23 1 2 3 4 B 16 D JOURNAL Date G Account Title and Explanation H PR 13,000 27,000 20,000 40,000 20,000 46,000 1 Debit Page Credit
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.
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