Harry,Tony and Liza run a partnership firm.In the process of liquidation,the partnership sells non-cash assets,having a book value of $73,000,for $92,000.Which of the following is true of the journal entries?
A)Non-cash assets will be credited for $92,000.
B)Cash will be credited for $73,000.
C)Cash will be credited by $19,000.
D)Non-cash assets will be credited for $73,000.

Question

Quizplus · Accepted Answer

Non-cash assets will be credited for their book value of $73,000 to remove them from the books. Cash will be debited for $92,000, reflecting the actual cash received.

Harry,Tony and Liza Run a Partnership Firm