On December 31, 2016, the balance sheet of CDO Partnership is as follows: Cash 15,360 Noncash Assets 271,360 Accounts Payable 51,200 Loan Payable to Dorie 20,480 Cherry, Capital 49,152 Dorie, Capital 73,728 Oscar, Capital 92,160 Profit and losses were shared as follows; Cherry, 30%; Dorie, 25% and Oscar, 45%. It was decided to liquidate the business. The following is a summary of the realization and liquidation activities. Assumptions: 1. The company will undergo Lump-sum liquidation. Other assets of the company was realized for 300,000. Required: Make a statement of Liquidation. 2. The company will undergo Instalment liquidation. The assets are realized as follows: Period BV of assets Cash Proceeds 1st 133,120 83,120 2nd 76,800 56,200 3rd 61,440 76,440 Required: Make a statement of liquidation and schedule of payments for the 1st and 2nd Period.
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.
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