Blossom Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of
cash, the company's balances are Cash $64,900; Oakley, Capital (Cr.) $51,400; Quaney, Capital (Dr.) $17,640; and Ellis, Capital (Cr.)
$31,140. The income ratios of the three partners are 2: 3: 5, respectively.
Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the
partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Oakley, Capital
Ellis, Capital
Quaney, Capital
(To record write-off of capital deficiency)
Oakley, Capital
Ellis, Capital
Cash
(To record distribution of cash to the partners)
64900