The partnership of Ace, Ben, Cid, and Don is dissolved on January 5, 2011, and the account balances at June 30, 2011, after all non-cash assets are converted into cash, are as follows:

1. The percentages indicated represent the relevant profit and loss sharing ratios.2. Personal assets and liabilities of the partners at June 30, 2011, are as follows:

3. Ace pays $200,000 into the partnership, and partnership liabilities are paid on July 1, 2011.4. On July 15, 2011, Cid pays $100,000 into the partnership and Don pays $80,000. No further contributions from either Cid or Don are possible.5. Losses from the bankruptcy of Cid are divided among the solvent partners on July 15, 2011.6. Available cash is distributed and the partnership books are closed on July 31,2011.

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Debits Credits $200,000 170,000 80,000 Cash Cid capital (20%) Don capital (10%) Accounts payable Ace capital (50%) Ben capital (20%) $400,000 40,000 10.000 $450,000 $450,000