Chapter 5
Partnerships
231
b) Write the journal entry to close the Drawings accounts on December 31, 2016.
Date
Account Title and Explanation
Debit
Credit
AP-10A (
8
)
Patricia, Karla, and Nathan operate a small law firm under a partnership. However, due to
some internal conflicts, all the partners have agreed to end the partnership. The following
items remain in the balance sheet on June 30, 2016 after all the assets have been liquidated.
Cash
$450,000
Capital—Patricia
188,000
Capital—Karla
82,000
Capital—Nathan
210,000
Prepare the journal entries to allocate any profit or loss on sale of assets, and to record cash
distribution.
Date
Account Title and Explanation
Debit
Credit
