Kershaw, Buehler, and Bauer are partners and agree to share profit and loss in the ratio of 30/30/40. The partners have agreed to liquidate, liquidation expenses will total $28,000. The following are the balances prior to liquidation: Cash, $100,000; Noncash assets, $700,000; Liabilities $354,000; Kershaw Capital, $200,000; Buehler Capital, $144,000 and Bauer Capital, $102,000. Assume actual liquidation expenses are 2420,000 and noncash assets sold for $500,000 using an excel spreadsheet prepare a 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.
Step by step
Solved in 2 steps with 1 images
