Smith, Brown and Easton (S, B & E) are partners with capital balances of $6...
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Accounting
Smith, Brown and Easton (S, B & E) are partners with capital balances of $6 000, $4 000 and $2 000 respectively and S, B &E share profits 50 per cent, 25 per cent and 25 per cent respectively.
The partners have decided to liquidate the partnership and sell the non-cash assets for a $10 000 loss. After the loss is allocated the balances in each of the partners capital accounts will be (rounded to the nearest dollar):
Smith = Credit $909; Brown = Credit $727; Easton = Credit $363
Smith = Credit $667; Brown = Credit $667; Easton = Credit $667
Smith = Credit $1 000; Brown = Credit $1 500; Easton = Debit $500
Smith = Credit $2 000; Brown = Credit $1 000; Easton = Debit $1 000
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