Account balances December 31, 2023 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $67,000 on Janua , 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Account balances December 31, 2023 Sale of equipment Cash $36,100 Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Balance Payment of liabilities Balance Accum. David Olena Danny Lin, Deprec. Accounts Notes Wallace, Dunn, Equipment Equipment Payable Payable Capital Capital Capital $185,000 $100,000 $8,100 $23,000 $42,000 $25,000 $23,000 Cash Accum. Deprec. Equipment Accounts Notes Payable Payable David Wallace, Capital $36,100 $ 185,000 $ 100,000 $ 8,100 $ 23,000 $ 42,000 $ Equipment Olena Dunn, Capital 25,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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