The Ace, Becky, and Cap partnership was in the process of liquidating its assets and going out of business. These are the balances of the company accounts immediately before liquidation:

Cash	$130,000
Non-liquid assets	$420,000
Debts with external creditors	$165,000
loan for pay to social cap	$5,000
Capital by Ace 20%	$100,000
Capital by Becky 50%	$80,000
Capital by Cap 30%	$200,000

The profits and losses of Ace, Becky and Cap partnership are shared in the ratio of 2:5:3.

The illiquid assets were sold for $200,000 in cash. Becky is personally insolvent.

Required: Prepare all the journal entries necessary to liquidate the partnership.

Answer rating: 100% (QA)

1 Sale of nonliquid assets for 200000 in cash Debit Cash 200000 Credit Nonliquid assets200000 2 Paym... View the full answer