The MFP Partnership is to be liquidated when the ledger shows the following: $$\begin{array} { l r }
\text { Cash } & \$ 50,000 \
\text { Noncash Assets } & 200,000 \
\text { Liabilities } & 50,000 \
\text { Mossimo, Capital } & 75,000 \
\text { Fandango, Capital } & 100,000 \
\text { Plank, Capital } & 25,000
\end{array}$$ Mossimo Fandango and Plank's income ratios are 6:3:1 respectively.
Instructions
Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $140000 in cash.

Question

The MFP Partnership is to be liquidated when the ledger shows the following: $$\begin{array} { l r } 
\text { Cash } & \$ 50,000 \
\text { Noncash Assets } & 200,000 \
\text { Liabilities } & 50,000 \
\text { Mossimo, Capital } & 75,000 \
\text { Fandango, Capital } & 100,000 \
\text { Plank, Capital } & 25,000
\end{array}$$ Mossimo Fandango and Plank's income ratios are 6:3:1 respectively.
Instructions
Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $140000 in cash.

Quizplus · Accepted Answer

The Answer of The MFP Partnership is to be liquidated when the ledger shows the following: $$\begin{array} { l r } 
\text { Cash } & \$ 50,000 \
\text { Noncash Assets } & 200,000 \
\text { Liabilities } & 50,000 \
\text { Mossimo, Capital } & 75,000 \
\text { Fandango, Capital } & 100,000 \
\text { Plank, Capital } & 25,000
\end{array}$$ Mossimo Fandango and Plank's income ratios are 6:3:1 respectively.
Instructions
Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $140000 in cash.

The MFP Partnership Is to Be Liquidated When the Ledger