Liquidation of a Partnership | Financial Accounting Course | CPA Exam FAR
Channel: Farhat Lectures. The # 1 CPA & Accounting Courses
Date: 2020-05-11

In this session, I explain liquidation of partnership in a financial accounting course.Accounting for the liquidation of a partnership involves four steps as follows:
1)ell non cash assets for cash.
2)Allocate any gain or loss on the sale of non cash assets to each partner using the income ratio.
3)Pay any liabilities of the partnership.
4) Distribute the remaining cash to the partners using the capital ratio.

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