The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2011. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively. The disposal of Other Assets with a carrying amount of $200,000 realized $140,000, and all available cash was distributed.
Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2011, to record the offset of the loan receivable from Donald.

Question

The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2011. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively.  The disposal of Other Assets with a carrying amount of $200,000 realized $140,000, and all available cash was distributed.
Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2011, to record the offset of the loan receivable from Donald.

Quizplus · Accepted Answer

The Answer of The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2011. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively.  The disposal of Other Assets with a carrying amount of $200,000 realized $140,000, and all available cash was distributed.
Prepare the journal entry for Donald, Chief & Berry LLP on August 1, 2011, to record the offset of the loan receivable from Donald.

The Partners of Donald, Chief & Berry LLP Decided to Liquidate