Ans. Option B. Capital balances
Explanation: In the process of liquidation, after paying all the creditors, the remaining cash balance is distributed to all partners according to their capital ratio.
The remaining cash of a partnership (after creditors have been paid) upon liquidation is divided among...
The remaining cash of a partnership (after creditors have been paid) upon liquidation is divided among partners according to their a. drawing balances b. capital balances c.income sharing ratio d. contribution of assets
A gain or loss on realization is divided among partners according to their a. capital balances. b. contribution of assets. c. income sharing ratio. d. drawing balances.
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $36,600, $52,200, and $23,100, respectively. Cash, noncash assets, and liabilities total $55,200, $96,600, and $39,900, respectively. Between July 1 and July 29, the noncash assets are sold for $77,400, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $42,000 and $28,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $53,000. a. What is the amount of a gain or loss on realization? $ b. How should the gain or loss be divided between Hewitt and Patel? Hewitt Patel c. How...
Statement of Partnership Liquidation 63,600, and $28,200, respectively. Cash, noncash After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are丰44,700, $63,600, and $28,200 respectively. Cash noncash assets, and liabilities total $65,700 $117,600 and $46,800, respectively. Between July 1 and July 29, the noncash assets are sold for $94,200, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss...
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $10,000 and $12.000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $23,000 a. What is the amount of a gain or loss on realization? b. How should the gain or loss be divided between Hewitt and Patel? Hewitt Patel C. How should...
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $12,000 and $8,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $15,000. a. What is the amount of a gain or loss on realization? b. How should the gain or loss be divided between Hewitt and Patel? Hewitt Patel c. How should...
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $42,000 and $28,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $53,000. a. What is the amount of a gain or loss on realization? $ b. How should the gain or loss be divided between Hewitt and Patel? Hewitt Patel c. How...
a. 6. In the liquidation of a partnership, any wain or loss realized on the sale of noncash ass allocated first to creditors and the remainder to partners. b. to the partners on the basis of their capital balances. c. to the partners on the basis of their income ratios. d. only after all creditors have been paid.
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $42,900, $61,200, and $27,000, respectively. Cash, noncash assets, and liabilities total $69,000, $113,100, and $51,000, respectively. Between July 1 and July 29, the noncash assets are sold for $90,300, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....