1.
Concept Introduction:
Liquidation of
The capital balance of each partner after the liquidation and assets and payment of creditors
2.
Concept Introduction:
Liquidation of Partnership: The process in which all the assets are sold for a partnership business and the collection hence made is distributed amongst partners is referred as liquidation of partnership. In an accounting process, the liquidation of partnership begins with selling of non-cash assets and realizing the amount hence made. The profit or loss made on sale is distributed amongst partners in the income sharing ratio. If there is profit, liabilities are disbursed with that amount. Balance amount is then distributed amongst partners in mutually decided ratio.
To prepare: The
3.
Concept Introduction:
Liquidation of Partnership: The process in which all the assets are sold for a partnership business and the collection hence made is distributed amongst partners is referred as liquidation of partnership. In an accounting process, the liquidation of partnership begins with selling of non-cash assets and realizing the amount hence made. The profit or loss made on sale is distributed amongst partners in the income sharing ratio. If there is profit, liabilities are disbursed with that amount. Balance amount is then distributed amongst partners in mutually decided ratio.
To prepare: The journal entries on May 31 to record the (a) transfer of deficit from the deficient partner to other partners and (b) final disbursement of cash to partners.
Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
FUND OF ACCOUNTING PRIN W/ACC <CUSTOM>
- Costs of $9,200 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping point) for a cost of $600. Additional necessary costs of $1,300 were incurred to acquire the goods. What is the buyer's total cost of merchandise inventory?arrow_forwardMendoza Company's highest point of total cost was $85,000 in June. Their point of lowest cost was $60,000 in January. The company makes a single product. Production volume in June and January was 16,000 and 9,000 units, respectively. What is the fixed cost per month? Round your final answer to the nearest whole dollar.arrow_forwardI want answerarrow_forward
- The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.6 hours Standard variable overhead rate $13 per hour The following data pertain to operations for the last month: Actual hours 9,800 hours Actual total variable overhead cost $125,210 Actual output 1,460 units Required: A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?arrow_forwardWhat is the answer?arrow_forwardFinancial accounting questionarrow_forward
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning