Liquidation of Partnership : Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting: Sale of non cash assets and realization of cash. Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio. Disbursement of liabilities of partnership using the available cash. Distribution of balances cash amongst the partners in their capital ratio. Requirement-1: To determine: The loss from selling the assets of the partnership

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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.

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

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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.

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

Expert Solution & Answer

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See solution

Answer 3

Question

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.

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

Expert Solution & Answer

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Answer 4

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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.

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

Answer 6

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

Answer 7

Chapter 12, Problem 10E

To determine

Concept Introduction:

Liquidation of Partnership: Liquidation of partnership is the process of selling all the partnership assets and distributing the collection amongst the partners. The liquidation of partnership takes following steps from the point for view of accounting:

Sale of non cash assets and realization of cash.

Sharing the gain or loss on sale of non cash assets amongst the partners in their income sharing ratio.

Disbursement of liabilities of partnership using the available cash.

Distribution of balances cash amongst the partners in their capital ratio.

Requirement-1:

To determine: The loss from selling the assets of the partnership

Answer 8

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

Answer 9

To determine

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

Answer 10

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

Answer 11

To determine

Requirement-3:

To determine: The capital deficiency of each partner to contribute

Answer 12

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Answer 15

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

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Requirement-2:

To determine: The allocation of loss on sale of assets to partners

Requirement-3:

To determine: The capital deficiency of each partner to contribute

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Chapter 12 Solutions

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Requirement-2: To determine: The allocation of loss on sale of assets to partners

Requirement-3: To determine: The capital deficiency of each partner to contribute

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Chapter 12 Solutions

Requirement-2:

To determine: The allocation of loss on sale of assets to partners

Requirement-3:

To determine: The capital deficiency of each partner to contribute