The Partnership Shows the Following Capital Balances After the Allocation

Multiple Choice

The partnership shows the following capital balances after the allocation of liquidation gains and losses: Kapoor,$22,000,Patel,$11,000,and Punjab,$9,000.After selling the noncash assets and paying the liabilities of the partnership,the Cash account has a balance of $40,000.The partners share income and loss equally.Any remaining cash is divided among the partners according to their capital account balances.How would the partnership record this transaction?

A) Debit Gain from Liquidation for $42,000,credit Kapoor,Capital for $22,000,credit Patel,Capital for $11,000,and credit Punjab,Capital for $9,000.
B) Debit Income Summary for $42,000,credit Kapoor,Capital for $22,000,credit Patel,Capital for $11,000,and credit Punjab,Capital for $9,000.
C) Debit Kapoor,Capital for $22,000,credit Patel,Capital for $11,000,and credit Punjab,Capital for $9,000.
D) Debit Kapoor,Capital for $14,000,debit Patel,Capital for $14,000,debit Punjab,Capital for $14,000,and credit Cash for $42,000.
E) Debit Kapoor,Capital for $22,000,debit Patel,Capital for $11,000,debit Punjab,Capital for $9,000,and credit Cash for $42,000.