. R, S and T share profit and losses in the ratio R=35%, S== 45% and T=
20%. The partners decided to dissolve their partnership. The capital balances of
the partners before and after accounting for sale of partnership assets and
settlement of creditors and dissolution cost are:

T became insolvent and was able to settle the deficit balance in the
capital accounts. In accordance with the Garner V Murray rule, the journal
entries to settle the debit balance in T’s capital account are:

Question

. R, S and T share profit and losses in the ratio R=35%, S== 45% and T=
20%. The partners decided to dissolve their partnership. The capital balances of
the partners before and after accounting for sale of partnership assets and
settlement of creditors and dissolution cost are:

T became insolvent and was able to settle the deficit balance in the
capital accounts. In accordance with the Garner V Murray rule, the journal
entries to settle the debit balance in T’s capital account are:

Answer

Dr. Capital R       12,000

Dr. Capital S        18,000

Cr. Capital T        30,000

Answer

Dr. Capital T       30,000

Cr. Capital R       11,250

Cr. Capital S        18,750

Answer

Dr. Capital T       30,000

Cr. Capital R       12,000

Cr. Capital S        18,000

Answer

Dr. Capital R       11,250

Dr. Capital S        18,750

Cr. Capital T        30,000

	Before Dissolution	After Dissolution
R	$40,000 credit balance	$30,000 credit balance
S	$60,000 credit balance	$50,000 credit balance
T	$20,000 credit balance	$30,000 debit balance

Crowdly

. R, S and T share profit and losses in the ratio R=35%, S== 45% and T= 20%. Th...

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