Before the distribution of cash to the partners on April 30 of the current year, the accounts

Question:

Before the distribution of cash to the partners on April 30 of the current year, the accounts in LMN Enterprises are as follows:

The profit and loss ratio is 4:3:2.
(a) Assuming Lodge repays her capital deficiency, prepare the entry on April 30 to record
(1) Lodge's payment of $4,000 in cash to the partnership, and
(2) The distribution of cash to the partners.
(b) Assuming Lodge is not able to repay her capital deficiency, prepare the entry on April 30 to record
(1) The absorption of Lodge's capital deficiency by the other partners, and
(2) The distribution of cash to the partners.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...