Question

Parsons Company wishes to liquidate the firm by distributing the company’s cash to the three partners. Prior to the distribution of cash, the company’s balances are: Cash $73,000; Oakley, Capital (Cr.) $47,000; Quaney, Capital (Dr.) $14,000; and Ellis, Capital (Cr.) $40,000. The income ratios of the three partners are 3:3:4, respectively. Prepare the entry to record the absorption of Quaney’s capital deficiency by the other partners and the distribution of cash to the partners with credit balances.



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  • CreatedJanuary 30, 2014
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