The partnership of Able, Bower, and Cramer was liquidated. The partners have shared profits and losses in the ratio of 2:4:4. Prior to liquidation, their capital balances were the following*:
* Deficit shown in parentheses
Cash totaled $20,000, with liabilities amounting to $30,000. A review of the individual partners' personal financial status reveals the following:
$\begin{array}{lrr}
& \text { Assets } & \text { Liabilities } \
\text { Able } & \$ 5,000 & \$ 20,000 \
\text { Baker } & 6,000 & 4,000 \
\text { Cramer } & 30,000 & 20,000
\end{array}$ Required:
Prepare a worksheet to liquidate the partnership.

Question

The partnership of Able, Bower, and Cramer was liquidated. The partners have shared profits and losses in the ratio of 2:4:4. Prior to liquidation, their capital balances were the following*:
  * Deficit shown in parentheses
Cash totaled $20,000, with liabilities amounting to $30,000. A review of the individual partners' personal financial status reveals the following:
 $\begin{array}{lrr}
 & \text { Assets } & \text { Liabilities } \
\text { Able } & \$ 5,000 & \$ 20,000 \
\text { Baker } & 6,000 & 4,000 \
\text { Cramer } & 30,000 & 20,000
\end{array}$ Required:
Prepare a worksheet to liquidate the partnership.

Quizplus · Accepted Answer

The Answer of The partnership of Able, Bower, and Cramer was liquidated. The partners have shared profits and losses in the ratio of 2:4:4. Prior to liquidation, their capital balances were the following*:
  * Deficit shown in parentheses
Cash totaled $20,000, with liabilities amounting to $30,000. A review of the individual partners' personal financial status reveals the following:
 $\begin{array}{lrr}
 & \text { Assets } & \text { Liabilities } \
\text { Able } & \$ 5,000 & \$ 20,000 \
\text { Baker } & 6,000 & 4,000 \
\text { Cramer } & 30,000 & 20,000
\end{array}$ Required:
Prepare a worksheet to liquidate the partnership.

The Partnership of Able, Bower, and Cramer Was Liquidated Required: Prepare a Worksheet to Liquidate the Partnership

The Partnership of Able, Bower, and Cramer Was Liquidated Required:
Prepare a Worksheet to Liquidate the Partnership