Hooks and Franklin are in the process of liquidating their partnership. They share profits and losses in a ratio of 3:1. They have sold all the non cash assets of the partnership. The transactions for the sales are as follows
Date Transactions
May 15 Equipment, with a book value of $10,000 was sold for $12,000.
May 17 Accounts receivable worth $7,000 sold to a finance broker: $6,800.
May 20 Merchandise inventory which cost $3,000, was sold for $1,900
Record the journal entries for the sale of non cash assets by using the general journal.
Instructions:
1. Remember that the journal entries have to be made for both gain and loss.
2. Pass journal entries separately for each transaction.