The MFP Partnership Is to Be Liquidated When the Ledger

question 205

Essay

The MFP Partnership is to be liquidated when the ledger shows the following: $$\begin{array} { l r } \text { Cash } & \$ 50,000 \\\text { Noncash Assets } & 200,000 \\\text { Liabilities } & 50,000 \\\text { Mossimo, Capital } & 75,000 \\\text { Fandango, Capital } & 100,000 \\\text { Plank, Capital } & 25,000\end{array}$$ Mossimo Fandango and Plank's income ratios are 6:3:1 respectively.
Instructions
Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $140000 in cash.

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Definitions:

Mental Speed

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