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 total amount of cash to be distributed to the partners is $225,000,then the entry to record the payment and to close the capital accounts 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 total amount of cash to be distributed to the partners is $225,000,then the entry to record the payment and to close the capital accounts would include a:

Quizplus · Accepted Answer

B) credit to cash of $225,000The correct entry to record the payment and close the capital accounts includes crediting cash for the total amount distributed to the partners, which is $225,000. This reduces the cash account by the amount distributed.

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

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