Question

NOTE THERE IS A CHANGE IN THE REQUIREMENTS FOR THIS QUESTION!! IT'S NOT THE EXACT SAME AS OTHER!!! CHANGE IN BOOK VALUE, AND NO LIQUIDATION EXPENSE!

The Nice, Rice, and Dice Partnership has not been successful. The partners have determined they must liquidate their partnership. The partners have agreed to liquidate the partnership. Prior to the liquidation, the partnership balance sheet reflects the following book values:
Cash $18,000
Noncash assets 51,000
Note receivable-Nice 3,000
Other liabilities 20,000
Capital, Nice 6,000
Capital, Rice 30,000
Capital, Dice 16,000
Profits and losses are shared 45% to Nice, 35% to Rice, and 20% to Dice. A review of the individual partner's personal net worth reveals the following:
Assets Liabilities
Nice 165,000 162,000
Rice 200,000 110,000
Dice 185,000 90,000
The following transactions occur:
a. Assets having a book value of $51,000 are sold for $22,000 cash
b. Liabilities are paid, where possible
c. Partners contribute from their personal net worth, according to RUPA Section 807 requirements

Prepare journal entries to liquidate the partnership. A schedule of liquidation may aid you in preparation of journal entries.

Answer 1

DATE	ACCOUNT	DEBIT	CREDIT
XXX	CASH	22,000.00
	LOSS ON SALE	29,000.00
	NONCASH ASSETS		51,000.00
XXX	CAPITAL, NICE	13,050.00
	CAPITAL, RICE	10,150.00
	CAPITAL, DICE	5,800.00
	LOSS ON SALE		29,000.00
XXX	LIABILITIES	20,000.00
	CASH		20,000.00
XXX	CAPITAL, RICE	16,113.50
	CAPITAL, DICE	7,936.50
	CASH		24,050.00

		cash	non cash	liabilities	Nice liability	Rice liability	dice liability	capital, Nice	capital, rice	capital. Dice
balances before realization		18,000.00	51,000.00	20,000.00	3,000.00	90,000.00	95,000.00	6,000.00	30,000.00	16,000.00
sale of asset and division of gain or loss		22,000.00	(51,000.00)					(13,050.00)	(10,150.00)	(5,800.00)
balances after realization		40,000.00	-	20,000.00	3,000.00	90,000.00	95,000.00	(7,050.00)	19,850.00	10,200.00
payment of liabilities		(20,000.00)		(20,000.00)	3,000.00	90,000.00	95,000.00	(7,050.00)	19,850.00	10,200.00
balances after payment of liabilties		20,000.00		-
Apply right of offsets					(3,000.00)			3,000.00
Balances		20,000.00			-	90,000.00	95,000.00	(4,050.00)	19,850.00	10,200.00
loss absortion by rice and dice								4,050.00	(2,713.50)	(1,336.50)
additional investment by rice and dice		4,050.00
Balances		24,050.00	-	-	-	90,000.00	95,000.00	-	17,136.50	8,863.50
Distribution of cash		(24,050.00)							16,113.50	7,936.50
Balance after distribution		-	-	-	-	90,000.00	95,000.00		33,250.00	16,800.00