Table 12-11
Doug, Davis, and Dwight Are in the Process

question 120

Multiple Choice

Table 12-11
Doug, Davis, and Dwight are in the process of liquidating their partnership. They share profits and losses in a 5:3:2 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{lcll}\text { Cash } & \$ 100,000 & \text { Liabilities } & \$ 55,000 \\\text { Other assets } & 225,000 & \text { Doug, canital } & 145,000\\&&\text { Davis, capital } & 50,000 \\&&\text { Dwight, capital } & 75,000\end{array}$ $\text { Total assets }\quad\$325,000\quad\quad\quad \text { Total liabilities and capital }\quad\$325,000$
-Refer to Table 12-11.If the other assets are sold for $250,000,to record the gain would include a:

• A) debit to Doug, Capital of $12,500
• B) credit to Other assets of $250,000
• C) credit to Davis, Capital of $7,500
• D) debit to Cash of $225,000

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Definitions:

Vestibular Sense

A sensory system located in the inner ear that provides information about body position and movement, aiding in balance and spatial orientation.

Olfactory Bulb

A brain structure responsible for processing smells, located at the base of the frontal lobe.

Precognition

The claimed power to predict or be aware of future occurrences before they actually occur.

Clairvoyance

The supposed ability to gain information about an object, person, location, or event through psychic means, not through the known senses.