CP 12–5 The following balance sheet is for the partnership of Able, Brown, and Crown at November 1, 2019. Assets Liabilities Cash Other assets $ 20,000 180,000 Accounts payable $ 50,000 Partners’ Capital $37,000 65,000 Able, capital Brown, capital $200,000 Crown , capital 48,000 150,000 $200,000 CHAPTER TWELVE / Proprietorships and Partnerships First US Edition The profit and loss sharing ratio is Able 40%; Brown: 40%, and Crown: 20%. The partnership is dissolved and liquidated during November by selling the other assets for $100,000 and paying off the creditors. Required: 1. Prepare a schedule of partnership liquidation for the month ending November 30, 2019. Assume any capital deficiency is absorbed by the other partners. 2. Prepare the journal entries to record the dissolution.
CP 12–5 The following balance sheet is for the partnership of Able, Brown, and Crown at November 1, 2019. Assets Liabilities Cash Other assets $ 20,000 180,000 Accounts payable $ 50,000 Partners’ Capital $37,000 65,000 Able, capital Brown, capital $200,000 Crown , capital 48,000 150,000 $200,000 CHAPTER TWELVE / Proprietorships and Partnerships First US Edition The profit and loss sharing ratio is Able 40%; Brown: 40%, and Crown: 20%. The partnership is dissolved and liquidated during November by selling the other assets for $100,000 and paying off the creditors. Required: 1. Prepare a schedule of partnership liquidation for the month ending November 30, 2019. Assume any capital deficiency is absorbed by the other partners. 2. Prepare the journal entries to record the dissolution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
CP 12–5
The following balance sheet is for the partnership of Able, Brown, and
Crown at November 1, 2019.
Assets Liabilities
Cash
Other assets
$ 20,000
180,000
Accounts payable $ 50,000
Partners’ Capital
$37,000
65,000
Able, capital
Brown, capital
$200,000
Crown , capital 48,000 150,000
$200,000
CHAPTER TWELVE / Proprietorships and Partnerships First US Edition
The profit and loss sharing ratio is Able 40%; Brown: 40%, and Crown:
20%. The partnership is dissolved and liquidated during November by
selling the other assets for $100,000 and paying off the creditors.
Required:
1. Prepare a schedule of partnership liquidation for the month
ending November 30, 2019. Assume any capital deficiency is
absorbed by the other partners.
2. Prepare the journal entries to record the dissolution.
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