The partnership of Able, Bert, and Carl has the following trial balance on January 31, 2015.
Debit Credit
Cash $20,000
Accounts Receivable (net) 30,000
Inventory 35,000
Plant and Equipment (net) 215,000
Accounts Payable $40,000
Able, Capital 120,000
Bert, Capital 90,000
Carl, Capital 50,000
Totals $300,000 $300,000
The partners share profits and losses as follows: Able, 50%, Bert, 30%, Carl, 20%. The partners have decided to liquidate their partnership by installments. Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions for February follows:
1. $25,000 is collected on accounts receivable; the balance is uncollectible.
2. $20,000 received for the entire inventory.
3. $1,500 liquidation expense paid
4. $40,000 paid to creditors
Required: Prepare the following for the month of February.
1. Statement of Partnership Realization and Liquidation with the supporting
2. Schedules for Save Payments to the partners