Table 12-11
Doug, Davis, and Dwight are in the process of liquidating their partnership. They share profits and losses in a 5:3:2 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{lcll}
\text { Cash } & \$ 100,000 & \text { Liabilities } & \$ 55,000 \
\text { Other assets } & 225,000 & \text { Doug, canital } & 145,000\
&&\text { Davis, capital } & 50,000 \
&&\text { Dwight, capital } & 75,000
\end{array}$ $\text { Total assets }\quad\$325,000\quad\quad\quad \text { Total liabilities and capital }\quad\$325,000$
-Refer to Table 12-11.If the other assets are sold for $250,000,to record the gain would include a:

Question

Table 12-11
Doug, Davis, and Dwight are in the process of liquidating their partnership. They share profits and losses in a 5:3:2 ratio. Following is the current balance sheet for the partnership:
 $\begin{array}{lcll}
\text { Cash } & \$ 100,000 & \text { Liabilities } & \$ 55,000 \
\text { Other assets } & 225,000 & \text { Doug, canital } & 145,000\
&&\text { Davis, capital } & 50,000 \
&&\text { Dwight, capital } & 75,000
\end{array}$ $\text { Total assets }\quad\$325,000\quad\quad\quad \text { Total liabilities and capital }\quad\$325,000$
-Refer to Table 12-11.If the other assets are sold for $250,000,to record the gain would include a:

Quizplus · Accepted Answer

The gain on the sale of other assets is $25,000 ($250,000 - $225,000). This gain is shared among the partners in their profit-sharing ratio of 5:3:2. Davis's share of the gain is $7,500 (3/10 of $25,000), which is credited to his capital account.

Table 12-11 Doug, Davis, and Dwight Are in the Process

Table 12-11
Doug, Davis, and Dwight Are in the Process