Liquidating Partnerships—Capital Deficiency Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Lewis, $34,900 Cr.; Zapata, $76,800 Cr.; Fowler, $22,300 Dr. a. What term is applied to the debit balance in Fowler's capital account? b. What is the amount of cash on hand? $fill in the blank d8d12ff8ffe7004_2 c. Journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. If an amount box does not require an entry, leave it blank. fill in the blank 1af34e092015079_2 fill in the blank 1af34e092015079_3 fill in the blank 1af34e092015079_5 fill in the blank 1af34e092015079_6
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.
Liquidating Partnerships—Capital Deficiency
Lewis, Zapata, and Fowler share equally in net income and net losses. After the
a. What term is applied to the debit balance in Fowler's capital account?
b. What is the amount of cash on hand?
$fill in the blank d8d12ff8ffe7004_2
c. Journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. If an amount box does not require an entry, leave it blank.
| fill in the blank 1af34e092015079_2 | fill in the blank 1af34e092015079_3 | ||
| fill in the blank 1af34e092015079_5 | fill in the blank 1af34e092015079_6 |
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