After Liquidating Noncash Assets and Paying Creditors, Account Balances in the Main

question 159

Essay

After liquidating noncash assets and paying creditors, account balances in the Main Co. are Cash $29,000, A Capital (Cr.) $11,000, B Capital (Cr,) $8,000 and C Capital (Cr.) $10,000. The partners share income equally.
Instructions
Journalize the final distribution of cash to the partners.

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Definitions:

Recording

The act of entering financial transactions into accounting records such as journals or ledgers.

Relevant

Information or data that is applicable to the current situation and is useful for decision-making purposes.

Neutral

A term indicating impartiality or lack of bias, often used in various contexts.