The Field, Brown & Snow partnership was begun with investments by the partners as follows: Field, $129,100; Brown, $167,700; and Snow, $154,600. The operations did not go well, and the partners eventually decided to liquidate the partnership, sharing all losses equally. On May 31, after all assets were converted to cash and all creditors were paid, only $46,100 in partnership cash remained.

QS 12-9 Part 2

2. Assume that any partner with a deficit agrees to pay cash to the partnership to cover the deficit. Present the journal entries on May 31 to record (a) the cash receipt from the deficient partner(s) and (b) the final disbursement of cash to the partners.

Record the receipt of cash from the deficient partner(s).

Note: Enter debits before credits.

Transaction General Journal Debit Credit (a) Record the disbursement of the remaining cash to the partner(s). Note: Enter debits before credits. Transaction General Journal Debit Credit (b) Assume that any partner with a deficit is not able to reimburse the partnership. Present journal entries (a) to transfer the deficit of any deficient partners to the other partners and (b) to record the final disbursement of cash to the partners. Journal entry worksheet Record the transfer of the deficit of any deficient partner(s) to the other partner(s). Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Journal entry worksheet Record the disbursement of the remaining cash to the partner(s). Note: Enter debits before credits. Transaction General Journal Debit Credit (b)