The ABC Partnership is to be liquidated. Partners A, B, and C share profits and...
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Accounting
The ABC Partnership is to be liquidated. Partners A, B, and C share profits and losses in the ratio of 4:3:3, respectively. Assume the following balances: Cash $ 25,000 Non-Cash Assets 150,000 Liabilities 50,000 A Capital 25,000 B Capital 35,000 C Capital 65,000
1. The noncash assets were sold for $75,000. 2. Liabilities were paid in full. 3. The remaining cash was distributed to the partners. (If a partner has negative capital deficiency, assume that the partner is unable to make up the capital deficiency.)
Instruction: Prepare journal entries and a Schedule of Liquidation.
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