Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $8,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash$68,000 Noncash assets 270,000 Total assets$338,000 Liabilities$49,000 Alex, capital 189,000 Bess, capital 100,000 Total liabilities and capital$338,000 Part B: Prepare a final statement of partnership liquidation.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
Alex and Bess have been in
Cash$68,000
Noncash assets 270,000
Total assets$338,000
Liabilities$49,000
Alex, capital 189,000
Bess, capital 100,000
Total liabilities and capital$338,000
Part B: Prepare a final statement of partnership liquidation.
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