The partnership of Ali, Bev, and Cal became insolvent during 2011, and the partnership ledger shows the following balances after all partnership assets have been converted into cash and all available cash distributed:

Debit Credit

Accounts payable ........................................ $30,000

Ali capital ................................................... 20,000

Bev capital .................... $120,000

Cal capital ..................... .................. 70,000

$120,000$120,000

Profit- and loss-sharing percentages for the three partners are Ali, 30 percent; Bev, 40 percent; and Cal, 30 percent. The personal assets and liabilities of the partners are as follows:

Ali Bev Cal

Personal assets ............... $60,000 ....... $110,000 ....... $60,000

Personal liabilities ............ 50,000 .......... 60,000 ......... 40,000

REQUIRED

Prepare a schedule to show the phaseout of the partnership and final closing of the books if the partnership creditors recover $30,000 from Bev.