Harry,Tony,and Liza run a partnership firm.In the process of liquidation,the partnership sells non-cash assets,having a book value of $78,000,for $86,000.Which of the following is true of the journal entries?
A)Cash will be credited by $8,000.
B)Non-cash assets will be credited for $86,000.
C)Cash will be credited for $78,000.
D)Non-cash assets will be credited for $78,000.

Question

Quizplus · Accepted Answer

Non-cash assets are credited for their book value of $78,000 to remove them from the books.

Harry,Tony,and Liza Run a Partnership Firm