Question

Chapter 12 1 EX 12.03 EXCEL ALGO eBook Show Me How Ofice 365 Calculator 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 $6,000 and $4,000, respectively. Aner i nocash assets are sold and all bites are paid, there is a cash balance of $8,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below 2 EX 12 18 EXCEL ALGO 3. EX 1208 BLANKSHEETAL... 4. PE 12.03A BLANKSHEET 5. EX 1201 BLANKSHEETAL... Open spreadsheet 6. PE 12 01A BLANKSHEET a. What is the amount of again or loss on retration? 7. PE 12 DLA 8. PE 1204B b. How should the gain or losse vided between Hewitt and Patel Hewitt 9. EX 12 10 BLANKSHEETAL.. 10 PR 12 03 BLANKSHEETA How should the can be divided between Hewitt and Pate an amounts, entero Hewitt and Patel Distribution of Cash Hewitt Pated

Answer 1

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X Cla 9 Drawing Tools 9.aug - Microsoft Excel Home Insert Page Layout Formulas Data Review View Format X n! % Cut Σ AutoSum Times New Rom - 11 Α Α΄ Wrap Text General En Copy Fill Paste 4.0 .00 BIU Merge & Center Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter Select Editing Clipboard Font Alignment Number Cells TextBox 1 for A B C D E F G H 1 J 1 2 al Gain or loss on Realization -2000 (This is difference between the existing capital balance and realisation of net asset in cash] 3 4 b] The loss should be divided between both the partners in capital ratio [i.e 6:4)- 5 6 Howitt Patel 1200 2000*6000/10000 800 2000*4000/1000 7 8 9 c] Hewitt and patel Distribution of Cash 10 11 12 13 Hewitt 6000 -1200 4800 4800 Capital balances before realization Division of gain or loss on realisation Balances Cash distributions to Partners Final Balances Patel 4000 -800 3200 3200 0 14 15 16 0 17 18 When there is no ratio given in the question of partnership, then gain or loss must be divided into capital ratio [since no predetermined ratio is given] 19 20 21 22 23 24 25 Sheet1 Sheet2 Sheet4 Sheet3 Sheet6 Sheet Sheets Sheet7 Sheets Sheet10 Sheet10 Sheet12 Sheet12 Sheet11 IIII Ready BO 100% + O 07:30 20-09-2020

X х X 123 fr Σ 7 Cin 9.aug - Microsoft Excel Home Insert Page Layout Formulas Data Review View Pa Define Name - Trace Precedents Show Formulas Calculate Now f Use in Formula Trace Dependents Error Checking Insert AutoSum Recently Financial Logical Text Date & Lookup & Math More Name Watch Calculation Calculate Sheet Function Used - Time Reference & Trig. Functions Manager Create from Selection Remove Arrows Evaluate Formula Window Remove Arrows - Evaluate Formula Options Function Library Defined Names Formula Auditing Calculation B22 foc A B C D E F 1 2 a] Gain or loss on Realization =8000-(6000+4000) (This is difference between the existing capital balance and realisation of net asset in cash] 3 4 b] The loss should be divided between both the partners in capital ratio [i.e 6:4)- 5 6 Howitt =2000*6/10 2000*6000/10000 7 Patel =2000*4/10 2000*4000/1000 G 8 9 c] Hewitt and patel Distribution of Cash 10 11 Patel 12 13 Hewitt Capital balances before realization 6000 Division of gain or loss on realisation -1200 Balances =SUM(D12:D13) Cash distributions to Partners +D14 Final Balances =+D14-D15 4000 -800 =SUM(E12:E13) 14 S-E14 15 16 =+E14-E15 17 18 When there is no ratio given in the question of partnership, then gain or loss must be divided into capital ratio [since no predetermined ratio is given] 19 20 21 22 23 24 25 Sheet1 Sheet2 Sheet4 Sheet3 Sheet6 Sheet9 Sheets Sheet7 Sheets Sheet10 Sheet12 Sheet11 Ready BO 100% + O GO 07:31 20-09-2020