DERSHIP ACCOUNTS-IV DISSOLUTION OF FIRM687A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide todissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive,as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear allthe expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under :LiabilitiesAssets₹editors1,317Debtors4,229Capital3,960Less Provision4,018is Capital2,970Stock1,872Cash290Other Assets1,710357C (Over drawn)8,2478,247B informs about the following realisations :yDebtors: 3,462, Stock 1,444; Goodwill: 50, Other assets : 914.9Creditors which were not recorded in books are now paid 100. The expenses of realisation amountedto 310. C is able to contribute only 100 beyond which he expresses his insolvency. Close the(Ans. Realisation Loss 1,830; Payment to A3,432; to B * 2,875)books of the firm.STING0211.

Partnership- A partnership is a type of business in which two or more people form a formal agreement…

687 A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide to dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive, as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear all the expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under: Liabilities ₹ Assets ₹ ors 1,317 Debtors 4,229 apital 3,960 Less Provision 4,018 pital 2,970 Stock 1,872 211.

687 A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide to dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive, as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear all the expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under: Liabilities ₹ Assets ₹ ors 1,317 Debtors 4,229 apital 3,960 Less Provision 4,018 pital 2,970 Stock 1,872 211.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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DERSHIP ACCOUNTS-IV DISSOLUTION OF FIRM
687
A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide to
dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive,
as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear all
the expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under :
Liabilities
Assets
₹
editors
1,317
Debtors
4,229
Capital
3,960
Less Provision
4,018
is Capital
2,970
Stock
1,872
Cash
290
Other Assets
1,710
357
C (Over drawn)
8,247
8,247
B informs about the following realisations :
y
Debtors: 3,462, Stock 1,444; Goodwill: 50, Other assets : 914.
9
Creditors which were not recorded in books are now paid 100. The expenses of realisation amounted
to 310. C is able to contribute only 100 beyond which he expresses his insolvency. Close the
(Ans. Realisation Loss 1,830; Payment to A3,432; to B * 2,875)
books of the firm.
S
TING
0
211.

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Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital $ 60,000 27,000 43,000 20,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Chen Korhonen 60,000 $ Lebuca 27,000 $ 43,000 $ Swid 20,000:
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5. Show solution in good accounting form
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital Required: $ 68,000 29,400 51,000 22,400 Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances Chen Korhonen Lebuca Swid $ 68,000 $ 29,400 $ 51,000 $ 22,400