The balance sheet of Quanto, Rollo & Simms LLP prior to liquidation included the following:
The three partners shared net income and losses in a 5:3:2 ratio, respectively. Noncash assets realized $60,000, resulting in a loss of $10,000. Creditors were paid in full, partners were paid $25,000, and cash of $5,000 was withheld pending future developments.
Prepare undated journal entries to record the foregoing transactions and events. Show supporting computations in the explanations for the journal entries.

Question

The balance sheet of Quanto, Rollo & Simms LLP prior to liquidation included the following:
  The three partners shared net income and losses in a 5:3:2 ratio, respectively. Noncash assets realized $60,000, resulting in a loss of $10,000. Creditors were paid in full, partners were paid $25,000, and cash of $5,000 was withheld pending future developments.
Prepare undated journal entries to record the foregoing transactions and events. Show supporting computations in the explanations for the journal entries.

Quizplus · Accepted Answer

The Answer of The balance sheet of Quanto, Rollo & Simms LLP prior to liquidation included the following:
  The three partners shared net income and losses in a 5:3:2 ratio, respectively. Noncash assets realized $60,000, resulting in a loss of $10,000. Creditors were paid in full, partners were paid $25,000, and cash of $5,000 was withheld pending future developments.
Prepare undated journal entries to record the foregoing transactions and events. Show supporting computations in the explanations for the journal entries.

The Balance Sheet of Quanto, Rollo & Simms LLP Prior