The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below: Nutt, Ohm, and Rice share profits and losses in a 40:40:20 ratio. All partners are personally insolvent.
Required:
A. Prepare the journal entries necessary to record the distribution of the available cash.
B. Prepare the journal entries necessary to record the completion of the liquidation process, assuming the other assets are sold for $120,000.

Question

The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below:  Nutt, Ohm, and Rice share profits and losses in a 40:40:20 ratio. All partners are personally insolvent.
Required:
A. Prepare the journal entries necessary to record the distribution of the available cash.
B. Prepare the journal entries necessary to record the completion of the liquidation process, assuming the other assets are sold for $120,000.

Quizplus · Accepted Answer

The Answer of The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below:  Nutt, Ohm, and Rice share profits and losses in a 40:40:20 ratio. All partners are personally insolvent.
Required:
A. Prepare the journal entries necessary to record the distribution of the available cash.
B. Prepare the journal entries necessary to record the completion of the liquidation process, assuming the other assets are sold for $120,000.

The NOR Partnership Is Being Liquidated