Prior to the distribution of cash to the partners, the accounts of ABC Company are: Cash $30,000, Ace, Capital (Dr.) $10,000, Ball, Capital (Cr.) $25,000, and Catt, Capital (Cr.) $15,000. They share income on a 5:3:2 basis.
Instructions
Prepare entries to record (a) the absorption of Ace's capital deficiency by the other partners and (b) the distribution of cash to the partners with credit balances.

Question

Quizplus · Accepted Answer

The Answer of Prior to the distribution of cash to the partners, the accounts of ABC Company are: Cash $30,000, Ace, Capital (Dr.) $10,000, Ball, Capital (Cr.) $25,000, and Catt, Capital (Cr.) $15,000. They share income on a 5:3:2 basis.
Instructions
Prepare entries to record (a) the absorption of Ace's capital deficiency by the other partners and (b) the distribution of cash to the partners with credit balances.

Prior to the Distribution of Cash to the Partners, the Accounts