Answer:The answer is $0 $0
Explanation:
The entry in the Balance sheet
Dr : capital Bill $25,000, page $110,000,Larry $100,000, Scot $65,000, Account payable $100,000 , Total Dr $400,000 Cr : Non cash asset $300,000, cash $ 100,000, Total Cr $400,000
The entry in the Realisation Account will be
Dr: sundry Asset $400,000, Cr : proceed from sale of asset $150,000, Balance c/d $250,000 , Share of the loss Bill 3/10 × 250,000 = $75,000, Page 2/10 × 250,000 = $50,000, Larry 1/10 × 250,000 = $25,000, Scot 4/10 × 250,000 = $100,000Total Dr : $400,000, Total Cr :$400,000
The entry in the capital Account of the partners will be
Bill Dr: share of loss $75,000, Total Dr:$75,000 Cr : Balance b/d $25,000,Balance c/d $50,000, Total Cr: $75,000
Page Dr: share of loss $50,000, Balance c/d $60,000, Total Dr:$110,000Cr: Balance b/d $110,000, Total Cr : $110,000
Larry Dr : share of loss $25,000, Balance c /d $75,000, Total Dr:$100,000, Cr : Balance b /d $100,000 Total Cr $100,000
Scot Dr: share of loss $100,000, Total Dr : $100,000Cr: Balance b /d $65,000, Balance c /d $35,000, Total Cr :$100,000
Note : if realisation of the asset result in a loss and a partners capital account is already or is thereby placed in debt, the partner must pay in enough cash to clear the balance. Otherwise, the remaining partners cannot be paid the sums shown to their credit. Since Page and Larry capital account both showed a debit balance, The amount to be distributed to page and Larry upon liquidation of the partnership is $0 $0
