After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:Cash $7,500 Noncash Assets 105,000 Liabilities $27,500 Anna, Capital 45,000 Brian, Capital 15,000 Cole, Capital 25,000 $112,500 $112,500 The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".Anna, Brian, and ColeStatement of Partnership LiquidationFor Period May 7-30 Cash +Noncash Assets =Liabilities +Capital Anna (3/6) +Capital Brian (2/6) +Capital Cole (1/6)Balances before realization$fill in the blank 51509703b05dfcc_1$fill in the blank 51509703b05dfcc_2$fill in the blank 51509703b05dfcc_3$fill in the blank 51509703b05dfcc_4$fill in the blank 51509703b05dfcc_5$fill in the blank 51509703b05dfcc_6Sale of assets and division of gainfill in the blank 51509703b05dfcc_7fill in the blank 51509703b05dfcc_8 fill in the blank 51509703b05dfcc_9fill in the blank 51509703b05dfcc_10fill in the blank 51509703b05dfcc_11Balances after realization$fill in the blank 51509703b05dfcc_12fill in the blank 51509703b05dfcc_13$fill in the blank 51509703b05dfcc_14$fill in the blank 51509703b05dfcc_15$fill in the blank 51509703b05dfcc_16$fill in the blank 51509703b05dfcc_17Payment of liabilitiesfill in the blank 51509703b05dfcc_18 fill in the blank 51509703b05dfcc_19 Balances after payment of liabilities$fill in the blank 51509703b05dfcc_20fill in the blank 51509703b05dfcc_21fill in the blank 51509703b05dfcc_22$fill in the blank 51509703b05dfcc_23$fill in the blank 51509703b05dfcc_24$fill in the blank 51509703b05dfcc_25Distribution of cash to partnersfill in the blank 51509703b05dfcc_26 fill in the blank 51509703b05dfcc_27fill in the blank 51509703b05dfcc_28fill in the blank 51509703b05dfcc_29Final balancesfill in the blank 51509703b05dfcc_30fill in the blank 51509703b05dfcc_31fill in the blank 51509703b05dfcc_32fill in the blank 51509703b05dfcc_33fill in the blank 51509703b05dfcc_34fill in the blank 51509703b05dfcc_35b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".Anna, Brian, and ColeStatement of Partnership LiquidationFor Period May 7-30 Cash +Noncash Assets =Liabilities +Capital Anna (3/6) +Capital Brian (2/6) +Capital Cole (1/6)Balances before realization$fill in the blank 80550bfb0f89fff_1$fill in the blank 80550bfb0f89fff_2$fill in the blank 80550bfb0f89fff_3$fill in the blank 80550bfb0f89fff_4$fill in the blank 80550bfb0f89fff_5$fill in the blank 80550bfb0f89fff_6Sale of assets and division of lossfill in the blank 80550bfb0f89fff_7fill in the blank 80550bfb0f89fff_8 fill in the blank 80550bfb0f89fff_9fill in the blank 80550bfb0f89fff_10fill in the blank 80550bfb0f89fff_11Balances after realization$fill in the blank 80550bfb0f89fff_12fill in the blank 80550bfb0f89fff_13$fill in the blank 80550bfb0f89fff_14$fill in the blank 80550bfb0f89fff_15$fill in the blank 80550bfb0f89fff_16$fill in the blank 80550bfb0f89fff_17Payment of liabilitiesfill in the blank 80550bfb0f89fff_18 fill in the blank 80550bfb0f89fff_19 Balances after payment of liabilities$fill in the blank 80550bfb0f89fff_20fill in the blank 80550bfb0f89fff_21fill in the blank 80550bfb0f89fff_22$fill in the blank 80550bfb0f89fff_23$fill in the blank 80550bfb0f89fff_24$fill in the blank 80550bfb0f89fff_25Receipt of deficiencyfill in the blank 80550bfb0f89fff_26 fill in the blank 80550bfb0f89fff_27 Balances$fill in the blank 80550bfb0f89fff_28fill in the blank 80550bfb0f89fff_29fill in the blank 80550bfb0f89fff_30$fill in the blank 80550bfb0f89fff_31fill in the blank 80550bfb0f89fff_32$fill in the blank 80550bfb0f89fff_33Distribution of cash to partnersfill in the blank 80550bfb0f89fff_34 fill in the blank 80550bfb0f89fff_35 fill in the blank 80550bfb0f89fff_36Final balances

Dissolution of Partnership Firm means complete end of the relationship between all the partners.All…

Answered: After discontinuing the ordinary…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:

Cash	$7,500
Noncash Assets	105,000
Liabilities		$27,500
Anna, Capital		45,000
Brian, Capital		15,000
Cole, Capital		25,000
	$112,500	$112,500

The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.

a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole
Statement of Partnership Liquidation
For Period May 7-30
	Cash +	Noncash Assets =	Liabilities +	Capital Anna (3/6) +	Capital Brian (2/6) +	Capital Cole (1/6)
Balances before realization	$fill in the blank 51509703b05dfcc_1	$fill in the blank 51509703b05dfcc_2	$fill in the blank 51509703b05dfcc_3	$fill in the blank 51509703b05dfcc_4	$fill in the blank 51509703b05dfcc_5	$fill in the blank 51509703b05dfcc_6
Sale of assets and division of gain	fill in the blank 51509703b05dfcc_7	fill in the blank 51509703b05dfcc_8		fill in the blank 51509703b05dfcc_9	fill in the blank 51509703b05dfcc_10	fill in the blank 51509703b05dfcc_11
Balances after realization	$fill in the blank 51509703b05dfcc_12	fill in the blank 51509703b05dfcc_13	$fill in the blank 51509703b05dfcc_14	$fill in the blank 51509703b05dfcc_15	$fill in the blank 51509703b05dfcc_16	$fill in the blank 51509703b05dfcc_17
Payment of liabilities	fill in the blank 51509703b05dfcc_18		fill in the blank 51509703b05dfcc_19
Balances after payment of liabilities	$fill in the blank 51509703b05dfcc_20	fill in the blank 51509703b05dfcc_21	fill in the blank 51509703b05dfcc_22	$fill in the blank 51509703b05dfcc_23	$fill in the blank 51509703b05dfcc_24	$fill in the blank 51509703b05dfcc_25
Distribution of cash to partners	fill in the blank 51509703b05dfcc_26			fill in the blank 51509703b05dfcc_27	fill in the blank 51509703b05dfcc_28	fill in the blank 51509703b05dfcc_29
Final balances	fill in the blank 51509703b05dfcc_30	fill in the blank 51509703b05dfcc_31	fill in the blank 51509703b05dfcc_32	fill in the blank 51509703b05dfcc_33	fill in the blank 51509703b05dfcc_34	fill in the blank 51509703b05dfcc_35

b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole
Statement of Partnership Liquidation
For Period May 7-30
	Cash +	Noncash Assets =	Liabilities +	Capital Anna (3/6) +	Capital Brian (2/6) +	Capital Cole (1/6)
Balances before realization	$fill in the blank 80550bfb0f89fff_1	$fill in the blank 80550bfb0f89fff_2	$fill in the blank 80550bfb0f89fff_3	$fill in the blank 80550bfb0f89fff_4	$fill in the blank 80550bfb0f89fff_5	$fill in the blank 80550bfb0f89fff_6
Sale of assets and division of loss	fill in the blank 80550bfb0f89fff_7	fill in the blank 80550bfb0f89fff_8		fill in the blank 80550bfb0f89fff_9	fill in the blank 80550bfb0f89fff_10	fill in the blank 80550bfb0f89fff_11
Balances after realization	$fill in the blank 80550bfb0f89fff_12	fill in the blank 80550bfb0f89fff_13	$fill in the blank 80550bfb0f89fff_14	$fill in the blank 80550bfb0f89fff_15	$fill in the blank 80550bfb0f89fff_16	$fill in the blank 80550bfb0f89fff_17
Payment of liabilities	fill in the blank 80550bfb0f89fff_18		fill in the blank 80550bfb0f89fff_19
Balances after payment of liabilities	$fill in the blank 80550bfb0f89fff_20	fill in the blank 80550bfb0f89fff_21	fill in the blank 80550bfb0f89fff_22	$fill in the blank 80550bfb0f89fff_23	$fill in the blank 80550bfb0f89fff_24	$fill in the blank 80550bfb0f89fff_25
Receipt of deficiency	fill in the blank 80550bfb0f89fff_26				fill in the blank 80550bfb0f89fff_27
Balances	$fill in the blank 80550bfb0f89fff_28	fill in the blank 80550bfb0f89fff_29	fill in the blank 80550bfb0f89fff_30	$fill in the blank 80550bfb0f89fff_31	fill in the blank 80550bfb0f89fff_32	$fill in the blank 80550bfb0f89fff_33
Distribution of cash to partners	fill in the blank 80550bfb0f89fff_34			fill in the blank 80550bfb0f89fff_35		fill in the blank 80550bfb0f89fff_36
Final balances

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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