JOURNAL ENTRIES - January JOURNAL ENTRIES – February

Cash 40,200 Cash 42,000

A, Capital 4,580 A, Capital 12,170
B, Capital 2,748 B, Capital 7,302
C, Capital 1,832 C, Capital 4,868

Other Assets 49,4000 Other Assets 66,340

To record sale of other assets and division To record sale of other assets and division
of losses of losses

Accounts Payable 25,784 A, Loan 16,000

Cash 25,874 A, Capital 16,000

To record payment to outside creditors To record transfer of A’s loan to A’s Capital

A, Capital 12,544 A, Capital 3,287

C, Capital 5,018 C, Capital 1,315

B, Capital 17,562 B, Capital 4,602

To record absorption of B’s deficiency by A To record absorption of B’s deficiency by A

and C and C

C, Capital 11,240 A, Loan 16,000

A, Capital 3,617
A, Capital 11,240 C,Capital 23,583

To record absorption of A’s deficiency by C Cash 43,200

C, Capital 13,816 To record payment to Partner A and C and

A’s loan
Cash 13,816

To record payment to Partner C

JOURNAL ENTRIES – March

Cash 7,400
A, Capital 300
B, Capital 180
C, Capital 120

Other Assets 8,000

To record sale of other assets and division

of losses

A, Capital 3,287
C, Capital 1,315

B, Capital 4,602

To record absorption of B’s deficiency by A

and C

A, Capital 6,143
C, Capital 2,457

Cash 8,600

To record payment to partners A and C