Determine the amount received by Jenny as a final distribution from liquidation of the partnership.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prior to liquidating their partnership, Craig and Jenny had capital accounts of $60,570 and $116,570, respectively. The partnership assets were sold for $214,550. The partnership had $23,370 of liabilities. Craig and Jenny share income and losses equally.

Determine the amount received by Jenny as a final distribution from liquidation of the partnership.

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Step 1: Introduction

Liquidation is the process of winding up the company by selling all the assets to generate funds to pay off the outstanding liabilities. The partners distribute the money derived from sale of assets if any assets are left after settlement of the liabilities and the partners are asked to get more capital if assets aren't enough to settle the dues.


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