Answered: Required: The partners decide to…

Required: The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $115,000. Prepare a proposed schedule of liquidation at this point in time.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share profits and losses in the ratio of
4:3:3, respectively:
Cash
Other assets
Gulian, loan
Total assets
$ 89,000
820,000
55,000
$ 964,000
Accounts payable
Zahiri, loan
Gulian, capital
Singh, capital
Zahiri, capital
Total liabilities and capital
Beginning balances
Sold assets
Adjusted balances
Max loss on remaining noncash assets
Paid liabilities
Safe payments
Required:
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $115,000. Prepare a proposed schedule
of liquidation at this point in time.
Note: Amounts to be deducted should be entered with a minus sign.
X Answer is complete but not entirely correct.
GULIAN, SINGH, AND ZAHIRI
Proposed Schedule of Liquidation
Cash
$ 89,000
115.000
$ 204,000
0
››
Other
Assets
(60,000)✔
$ 144,000 $
$ 820,000 $ 60,000
(328,000) ✔
0
492,000 $ 60,000
(492,000)
Accounts
Payable
0
0
$
0
(60,000)
0
Gulian,
Loan
$ 60,000
54,000
340,000
260,000
250,000
$ 964,000
and
Capital
$ 285,000
(196,800)
$ 88,200
78,720 x
0
$ 166,920
Singh,
Capital
Zahiri,
Loan &
Capital
$ 260,000
S 304,000✔
$ 112,400
23,616 X
0
(147,600) X (147,600) X
$ 156,400
7,085 X
0✓
$ 136,016
$ 163,485

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