The partnership of Folly and Frill is in the process of liquidation. On January 1, 2011, the ledger...

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The partnership of Folly and Frill is in the process of liquidation. On January 1, 2011, the ledger shows account balances as follows:

On January 10, 2011, the lumber inventory is sold for $25,000, and during January, accounts receivable of $21,000 are collected. No further collections on the receivables are expected. Profits are shared 60 percent to Folly and 40 percent toFrill.

Robert · Accepted Answer

Order id: PPSub190615_293706_9
Statement showing cash distribution
Folly  Frill 
Cash as at 1 Jan,2011 10000 
  Add: Sales proceeds from inventory 25000 
  Add: Collection from receivables 21000 

56000 
  Capital Balance on 1 Jan,2011 60000 40000 20000 
Add:

The partnership of Folly and Frill is in the process of liquidation. On January 1, 2011, the ledger shows account balances as follows: On January 10, 2011, the lumber inventory is sold for $25,000,...

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