On January 1,2017,Sybil,Vivien and Zoe agree to liquidate their partnership.Sybil has a capital balance of $90,000,Vivien has a capital balance of $37,500,and Zoe has a capital balance of $20,000.The partners share net income/net loss in a ratio of 4:3:3.Accounts payable amount to $60,000.Assets are shown on the balance sheet at $20,000 of cash and $187,500 of noncash assets.All the noncash assets are sold for $100,000.
Prepare entries to sell the noncash assets,pay the liabilities,and distribute the remaining cash to the partners.If any of the partners have a deficit balance in their capital accounts,assume that the other partners absorb the deficit (based on their net income/loss ratio_before paying out the cash payment.

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The Answer of On January 1,2017,Sybil,Vivien and Zoe agree to liquidate their partnership.Sybil has a capital balance of $90,000,Vivien has a capital balance of $37,500,and Zoe has a capital balance of $20,000.The partners share net income/net loss in a ratio of 4:3:3.Accounts payable amount to $60,000.Assets are shown on the balance sheet at $20,000 of cash and $187,500 of noncash assets.All the noncash assets are sold for $100,000.
Prepare entries to sell the noncash assets,pay the liabilities,and distribute the remaining cash to the partners.If any of the partners have a deficit balance in their capital accounts,assume that the other partners absorb the deficit (based on their net income/loss ratio_before paying out the cash payment.

On January 1,2017,Sybil,Vivien and Zoe Agree to Liquidate Their Partnership