jane, castle and sean are dissolving their partnership. Their partnership agreement allocates
each partner and equal share of all income and losses.
the current period’s ending capital account balances are
Jane, $54,000; Castle $42,000 and Sean $6,000.
After all assets are sold and liabilities are paid, there is $90,000 in cash to be distributed.
Sean is unable to pay the deficiency. the journal entry to record the distribution should be:
a. Debit cast $90,000, debit sean, Capital $6,000, credit Jane, Capital $54,000, credit Castle, Capital $42,000
b. Debit Jane, Capital $54,000; debit Castle, Capital $36,000; credit cash $90,000
c. Debit Jane, Capital $54,000; debit Castle, Capital $42,000; credit cash $96,000
d. Debit cash $90,000; credit Jane, capital $30,000; credit Castle, Capital $30,000; credit Sean, Capital $30,000.
e. Debit Jane, Capital $51,000; debit Castle, Capital $39,000; credit cash $90,000