Homework Answers
Option A is correct
Reason
As partners share profit and losses equal to their income sharing ratio.
At the time of liquidation of partnership firm all the assets are realised and liabilities are settle and the remaining balance in partnership after settlement of all external liabilities are distributed among partner in their income sharing ratio.
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In a partnership liquidation, losses are made in accordance with the partner's income sharing ratio balances...
Question 3 4 pts Liquidation of an existing partnership must be done in a precise order....
Question 3 4 pts Liquidation of an existing partnership must be done in a precise order. The proper steps to follow when liquidating a partnership are o sell assets, distribute gains or losses to partners based on income sharing ratio, pay the liabilities with the cash from sale of assets, distribute remaining cash based on capital account balances. sell assets, pay liabilities off, distribute gains or losses based on income sharing ratio, distribute cash based on income sharing ratio. O...
Matching Question 207 Match the following statements to the appropriate terms. Each partner is personally and...
Matching Question 207 Match the following statements to the appropriate terms. Each partner is personally and individually liable for partnership debts. Made on basis of partners' capital balances. Explains changes in individual partner's capital accounts during a period. Each partner can bind the partnership so long as the action appears to be appropriate for the partnership Business terminates. Results in an increase in total net assets and total capital of the partnership Capital account with a debit balance. The basis...
Michael and George have been in partnership for several years, sharing profits and losses in the...
Michael and George have been in partnership for several years, sharing profits and losses in the ratio 3:4. At 1 January they had the following credit balances on their capital and current accounts: Capital $ Current $ Michael 65,000 11,486 Donald 80,000 9,637 The partnership statement of profit or loss for the year to 31 December shows a net profit of $28,595, and the partners had made drawings of $16,500 each. Required: Calculate the balance of Michael’s current account at...
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
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They...
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...
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They...
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?
QS 12-9 Liquidation of partnership LO P5 [The following information applies to the questions displayed below.]...
QS 12-9 Liquidation of partnership LO P5 [The following information applies to the questions displayed below.] The Field, Brown & Snow partnership was begun with investments by the partners as follows: Field, $130,500; Brown, $167,300; and Snow, $155,800. The partners decide to liquidate, sharing all losses equally. On May 31, after all assets were sold and all creditors were paid, only $48,300 in partnership cash remained. QS 12-9 Part 1 1. Compute the capital account balance of each partner...
In a partnership liquidation, O a. gains and losses on the sale of assets are allocated...
In a partnership liquidation, O a. gains and losses on the sale of assets are allocated to the partners on the basis of their current capital accounts. Ob. the partners' accounts are settled on the basis of their stated ratios. O c. creditors should be paid before partners. Od. the last journal entry credits the partners' capital accounts for the remaining cash.
Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They...
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...
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...
Question 3 4 pts Liquidation of an existing partnership must be done in a precise order. The proper steps to follow when liquidating a partnership are o sell assets, distribute gains or losses to partners based on income sharing ratio, pay the liabilities with the cash from sale of assets, distribute remaining cash based on capital account balances. sell assets, pay liabilities off, distribute gains or losses based on income sharing ratio, distribute cash based on income sharing ratio. O...
Matching Question 207 Match the following statements to the appropriate terms. Each partner is personally and individually liable for partnership debts. Made on basis of partners' capital balances. Explains changes in individual partner's capital accounts during a period. Each partner can bind the partnership so long as the action appears to be appropriate for the partnership Business terminates. Results in an increase in total net assets and total capital of the partnership Capital account with a debit balance. The basis...
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
In a partnership liquidation, O a. gains and losses on the sale of assets are allocated to the partners on the basis of their current capital accounts. Ob. the partners' accounts are settled on the basis of their stated ratios. O c. creditors should be paid before partners. Od. the last journal entry credits the partners' capital accounts for the remaining cash.
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...
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