Liquidating partnership with capital deficiency
Creditors (Points : 1)must collect their claims equally from Milliken and collect the entire ,000 from collect their claims 75% from Milliken and 25% from not require Salinas to use his personal assets to satisfy the ,000 in claims. Partners Gary and Elaine have agreed to share profits and losses in an ratiorespectively, after Gary is allowed a salary allowance of ,000 and Elaine is allowed a salaryallowance of ,000. Brian will invest a truck with a book value of,000 and a fair value of ,000.
The Salinas-Milliken partnership is terminated when creditor claims exceed partnershipassets by ,000.
Salinas is a millionaire and Milliken has no personal assets.
Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss) as negative numbers using a minus sign.
If there is no amount or an amount is zero, enter "0". Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entry to allocate the partner's deficiency.