After discontinuing the ordinary business operatins and closing the accounts on May 7, the ledger of the partnership indicate the following:
Cash $75,000
Noncash 105,000
Liablities $27,500
Anna, Capital $45,000
Brian Capital $15,000
Cole Capital $25,000
Partners share net income and losses in the ratio of 3:2:1 between May 7-30 the noncash assests were sold for $150,000 the liabilities were paid and the remaining cash was distributed to the partners.
A Prepare a statement of partnership liquidation
B Assume the same facts as in A. except that noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficinecy to the partnership. Prepare a statement of partnership liqudation?