Asked by Sadie Clark on Jul 25, 2024
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The last entry to liquidate a partnership would probably include:
A) debit to Capital (for each partner) ; credit to Cash.
B) debit to Cash; debit or credit to Loss or Gain from Realization; credit to individual assets sold.
C) debit to individual assets sold; credit to Cash.
D) None of the above
Liquidate a Partnership
The process of dissolving a partnership by selling its assets, paying off debts, and distributing the remaining assets to partners.
Capital
represents the financial resources that are used by a business to fund its operations and growth, typically including funds contributed by owners or generated through profit.
Cash
Currency and coins, along with bank balances, checks, and money orders, readily available for use in transactions.
- Comprehend the necessary procedure and accounting records for dissolving a partnership, focusing on asset liquidation and settling liabilities.
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Learning Objectives
- Comprehend the necessary procedure and accounting records for dissolving a partnership, focusing on asset liquidation and settling liabilities.
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