Distribution of Cash Upon LiquidationDavid Oliver and Umar Ansari, with capital balances of $62,000 and $84,000, respectively, decide to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is $183,000 of cash remaining. If the partners share income and losses equally, how should the cash be distributed?If an amount is zero, enter in "0". Oliver and AnsariDistribution of Cash OliverAnsariTotalCapital balances before realization$62,000$84,000$146,000Division of gain on realizationfill in the blank fill in the blank Capital balances after realization$fill in the blank $fill in the blank Cash distributed to partnersfill in the blank fill in the blank Final balances$fill in the blank $fill in the blank

Realization gain = Cash balance after paying liabilities - Total capital balance = $183,000 -…

Answered: David Oliver and Umar Ansari, with…

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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Distribution of Cash Upon Liquidation

David Oliver and Umar Ansari, with capital balances of $62,000 and $84,000, respectively, decide to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is $183,000 of cash remaining. If the partners share income and losses equally, how should the cash be distributed?

If an amount is zero, enter in "0".

Oliver and Ansari
Distribution of Cash
	Oliver	Ansari	Total
Capital balances before realization	$62,000	$84,000	$146,000
Division of gain on realization	fill in the blank	fill in the blank
Capital balances after realization	$fill in the blank	$fill in the blank
Cash distributed to partners	fill in the blank	fill in the blank
Final balances	$fill in the blank	$fill in the blank

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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