The MFP Partnership is to be liquidated when the ledger shows the following: Cash ……………… $50,000 Noncash Assets ….. 200,000 Liabilities …………. 50,000 Moss, Capital ……... 75,000 Fairly, Capital ……...

The MFP Partnership is to be liquidated when the ledger shows the following:
Cash ……………… $50,000
Noncash Assets ….. 200,000
Liabilities …………. 50,000
Moss, Capital ……... 75,000
Fairly, Capital …… 100,000
Pratt, Capital ……… 25,000
Moss, Fairly, and Pratt's income ratios are 6:3:1, respectively.


Instructions
Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $150,000 in cash.