The Zhuzer Company at December 31 has cash $50000 noncash assets $250000 liabilities $138000 and the following capital balances: Zhu $112000 and Zerkel $50000. The firm is liquidated and $265000 in cash is received for the noncash assets. Zhu and Zerkel income ratios are 60% and 40% respectively.
Instructions
Prepare the entries to record:
(a) The sale of noncash assets.
(b) The allocation of the gain or loss on liquidation to the partners.
(c) Payment of creditors.
(d) Distribution of cash to the partners.

Question

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The Answer of The Zhuzer Company at December 31 has cash $50000 noncash assets $250000 liabilities $138000 and the following capital balances: Zhu $112000 and Zerkel $50000. The firm is liquidated and $265000 in cash is received for the noncash assets. Zhu and Zerkel income ratios are 60% and 40% respectively.
Instructions
Prepare the entries to record:
(a) The sale of noncash assets.
(b) The allocation of the gain or loss on liquidation to the partners.
(c) Payment of creditors.
(d) Distribution of cash to the partners.

The Zhuzer Company at December 31 Has Cash $50000 Noncash