How would a company go about liquidating a partnership if there was a capital deficiency? What...
How would a company go about liquidating a partnership if there was a capital deficiency? What is a capital deficiency?
Homework Answers
Capital deficiency is a scenario wherein the partner's capital investments and all other credits fall short when compared to the share of recurring losses from operations, realisation losses and withdrawals made. In short it occurs when a partner is having a debit balance in his capital account at the time of liquidation of the business. This deficiency can be remedied by the partner bringing sufficient cash or other personal assets to cover up the deficiency. In case the partner becomes insolvent, then contribtuion upto his available assets will be made. Any deficiency remaining will be borne by the solvent partners who take over these deficiency in the profit sharing ratios or any other way agreed upon.
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How would a company go about liquidating a partnership if there
was a capital deficiency? What...
Liquidating Partnership-Deficiency Prior to liquidating their partnership, Jolly and Reynell had capital accounts of $19,000 and...
Liquidating Partnership-Deficiency Prior to liquidating their partnership, Jolly and Reynell had capital accounts of $19,000 and $79,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Jolly and Reynell share income and losses equally. Required: a. Determine the amount of Jolly's deficiency. 1. Determine the amount distributed to Reynell, assuming Jolly is unable to satisfy the deficiency.
Liquidating Partnerek Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of...
Liquidating Partnerek Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of $23,000 and $85,000, respectively. The partnership assets were sold for $42,000. The partnership had no liabilities. Short and Morrison share income and losses equally. Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Morrison, assuming Short is unable to satisfy the deficiency,
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Russo had capital accounts of...
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Russo had capital accounts of $22,000 and $83,000, respectively. The partnership assets were sold for $37,000. The partnership had no liabilities. Short and Russo share income and losses equally Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Russo, assuming Short is unable to satisfy the deficiency.
Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and...
Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and $100,000, respectively. The partnership assets were sold for $46,000. The partnership had no liabilities. Pepper and Morrison share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Morrison, assuming Pepper is unable to satisfy the deficiency. $
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and...
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and $83,000, respectively. The partnership assets were sold for $38,000. The partnership had no liabilities. Pepper and Russo share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and...
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and $63,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Pepper and Haines share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Haines, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $21,000 and...
Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $21,000 and $85,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Pepper and Morrison share income and losses equally.
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Underwood and Haines had capital accounts of $25,000 and...
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Underwood and Haines had capital accounts of $25,000 and $105,000, respectively. The partnership assets were sold for $53,000. The partnership had no liabilities. Underwood and Haines share income and losses equally, Required: a. mine the amount of Underwood's deficiency. b. Determine the amount distributed to Haines, assuming Underwood is unable to satisfy the deficiency. Feedback 7 Check My Work 1. Begin with Underwood's equity prior to liquidation 2. Sell the assets and recognize...
Liquidating Partnerships 1. Prior to liquidating their partnership, MacPherson and Gentry had capital accounts of $45,000...
Liquidating Partnerships 1. Prior to liquidating their partnership, MacPherson and Gentry had capital accounts of $45,000 and $76,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $116,000. The partnership had $5,000 of liabilities. MacPherson and Gentry share income and losses equally. Determine the amount received by MacPherson as a final distribution from liquidation of the partnership. $ 2. Liquidating Partnerships—Deficiency Prior to...
explain how you solve it and what formula use to solve it Liquidating Partnerships-Deficiency Prior to...
explain how you solve it and what formula
use to solve it
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Bain had capital accounts of $24,000 and $85,000, respectively. The partnership assets were sold for $41,000. The partnership had no liabilities. Short and Bain share income and losses equally. Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Bain, assuming Short is unable to satisfy the deficiency. $
Liquidating Partnership-Deficiency Prior to liquidating their partnership, Jolly and Reynell had capital accounts of $19,000 and $79,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Jolly and Reynell share income and losses equally. Required: a. Determine the amount of Jolly's deficiency. 1. Determine the amount distributed to Reynell, assuming Jolly is unable to satisfy the deficiency.
Liquidating Partnerek Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of $23,000 and $85,000, respectively. The partnership assets were sold for $42,000. The partnership had no liabilities. Short and Morrison share income and losses equally. Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Morrison, assuming Short is unable to satisfy the deficiency,
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Russo had capital accounts of $22,000 and $83,000, respectively. The partnership assets were sold for $37,000. The partnership had no liabilities. Short and Russo share income and losses equally Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Russo, assuming Short is unable to satisfy the deficiency.
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and $83,000, respectively. The partnership assets were sold for $38,000. The partnership had no liabilities. Pepper and Russo share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and $63,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Pepper and Haines share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Haines, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Underwood and Haines had capital accounts of $25,000 and $105,000, respectively. The partnership assets were sold for $53,000. The partnership had no liabilities. Underwood and Haines share income and losses equally, Required: a. mine the amount of Underwood's deficiency. b. Determine the amount distributed to Haines, assuming Underwood is unable to satisfy the deficiency. Feedback 7 Check My Work 1. Begin with Underwood's equity prior to liquidation 2. Sell the assets and recognize...
explain how you solve it and what formula
use to solve it
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Bain had capital accounts of $24,000 and $85,000, respectively. The partnership assets were sold for $41,000. The partnership had no liabilities. Short and Bain share income and losses equally. Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Bain, assuming Short is unable to satisfy the deficiency. $
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