Subject : Accounting The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. Thepartners estimate liquidation expenses will be $13,000.CashNoncash assetsTotal assets$ 150,000270,000$ 420,000Beginning balancesPay liabilitiesMax liquidation expensesMax. loss-noncash assetsinitial safe paymentsLiabilitiesArch, capital (40%)Bibb, capital (20%)Dao, capital (40%)STotal liabilities and capitalPrepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination.(Amounts to be deducted should be entered with a minus sign.)ARCH, BIBB, AND DAO PARTNERSHIPProposed Schedule of LiquidationDate of TerminationNonoashAssetsCash0S$ 70,000125,00062,500162,500$ 420,000LiabilitiesArch, Capital Bibb, Capital40%20%0 $0 $Dao, Capital40%03

The liquidation of a partnership means selling assets and paying liabilities. When a partnership…

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $13,000. Cash Noncash assets Total assets $ 150,000 270,000 Beginning balances $ 420,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.) Cash ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash) Assets $ 70,000 125,000 62,500 162,500 $ 420,000 Liabilities Arch, Capital 40% Bibb, Capital 20% Dao, Capital 40%

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $13,000. Cash Noncash assets Total assets $ 150,000 270,000 Beginning balances $ 420,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.) Cash ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash) Assets $ 70,000 125,000 62,500 162,500 $ 420,000 Liabilities Arch, Capital 40% Bibb, Capital 20% Dao, Capital 40%

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $17,000. Cash Noncash assets Total assets $ 150,000 280,000 $ 430,000 Liabilities Beginning balances Pay liabilities Max. liquidation expenses Max. loss - noncash assets Initial safe payments Arch, capital (40%) 130,000 65,000 Bibb, capital (20%) Dao, capital (40%) 165,000 Total liabilities and capital $430,000 Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.) $ 70,000 ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Cash Noncash Assets Liabilities Arch, Capital Bibb, Capital 40% 20% Dao, Capital 40%
A condensed balance sheet for a partnership to be liquidated is as follows:(attached)The profit and loss percentages for Partners A, B, and C are 50%, 30%, and 20%, respectively. For each of the following independent scenarios, determine how much of the available cash, with the exception of $10,000, would be distributed to Partner B.1. Assume that the receivables and the inventory were liquidated for $140,000 cash.2. Assume that all noncash assets other than equipment were sold for $53,000 cash.3. Assume that noncash assets with a book value of $300,000 were sold for $250,000 cash and that a distribution to Partner A was made in order to pay off the loan payable to them.
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The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount Land and Buildings 212500 Plant and Machinery 127500 Wages 106250 Opening Stock of Finished Goods 1381250 Opening Stock of Raw material 10625 Opening Stock of Work in Progress 76500 Provision for bad debts 6375 Sundry debtors 212500 Commission 42500 Carriage inwards 6375 Y's Loan A/c 127500 Carriage outwards 3825 Factory Expenses 31875 Royalties 6375 Purchase of Raw material (net) 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses 31875 Salaries of works manager 51000 Cash at bank 34850 2014500 2014500 The following additional information is to be taken into…
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The equal DEF partnership has the following balance sheet:Cash and other assets $400,000Recourse liabilities $100,000Capital – D $100,000Capital – E $100,000Capital – F $100,000The profits and losses are allocated 40% to D, and 30% each to E and F. Under thepartnership agreement there is a capital account deficit restoration provision. Howshould the liability be allocated?
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The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: $ 50,000 75,000 75,000 21,000 $ 54,000 167,000 Cash Liabilities Miller, capital Tyson, capital Watson, capital Other assets Total Total liabilities and $221,000 $221,000 assets capital a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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A partnership has the following balance sheet prior to liquidation (partners' profit and loss ratios are in parentheses): $ 33,000 100,000 Cash Other assets Total $ 133,000 Beginning balances Sale of assets Pay liabilites Pay liquidation expenses Subtotal Distribution to partners Ending balances Liabilities Playa, capital (40%) Bahia, capital (30%) Arco, capital (30%) Total During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. Required: Prepare a statement of partnership liquidation to determine the amount of cash each partner receives as a result of this liquidation. Note: Amounts to be deducted should be entered with a minus sign. PLAYA, BAHIA, AND ARCO PARTNERSHIP Statement of Partnership Liquidation Other Assets Liabilities $ 50,000 24,000 29,000 30,000 $ 133,000 Cash Playa, Capital Bahia, Capital Arco, Capital (40%) (30%) (30%)
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