The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2021. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively. The partners do not expect to incur further liquidation expenses. A portion of the Other Assets with a carrying amount of $200,000 were sold for $140,000, and all available cash was distributed.Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2021, to record payment of liabilities.

Question

The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2021. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively. The partners do not expect to incur further liquidation expenses.  A portion of the Other Assets with a carrying amount of $200,000 were sold for $140,000, and all available cash was distributed.Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2021, to record payment of liabilities.

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The Answer of The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2021. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively. The partners do not expect to incur further liquidation expenses.  A portion of the Other Assets with a carrying amount of $200,000 were sold for $140,000, and all available cash was distributed.Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2021, to record payment of liabilities.

The Partners of Donald, Chief & Berry LLP Decided to Liquidate