Chapter 5
Partnerships
246
b) Write journal entry to close the drawings account on December 31, 2016.
Date
Account Title and Explanation
Debit
Credit
AP-10B (
8
)
LIN Partnership has to be terminated due to the death of one of the partners. After the
liquidation, the following items remained in the balance sheet.
LIN Partnership
Balance Sheet
As at March 31, 2016
Cash
$150,000
Partners’ Equity
Partner A
30,000
Partner B
55,000
Partner C
20,000
Partner D
45,000
Total
$150,000
Prepare the journal entries to record cash distribution. Assume that the assets were sold at
their book value.
Date
Account Title and Explanation
Debit
Credit
