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.
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Chapter 12 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
- Please provide solution for this general accounting questionarrow_forwardIf the materials price variance is $3000 F and the materials quantity and labor variances are each $2700 U, what is the total materials variance? a. $2700 U. b. $300 F. c. $3150 U. d. $3000 F.arrow_forwardsub. general accountarrow_forward
- On July 1, 2022, Burrough Company acquired 136,000 of the outstanding shares of Carter Company for $15 per share. This acquisition gave Burrough a 25 percent ownership of Carter and allowed Burrough to significantly influence the investee's decisions. As of July 1, 2022, the investee had assets with a book value of $7 million and liabilities of $456,800. At the time, Carter held equipment appraised at $319,200 more than book value; it was considered to have a seven-year remaining life with no salvage value. Carter also held a copyright with a five-year remaining life on its books that was undervalued by $980,000. Any remaining excess cost was attributable to an indefinite-lived trademark. Depreciation and amortization are computed using the straight-line method. Burrough applies the equity method for its investment in Carter. Carter's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Carter's income, earned evenly throughout each year, was $579,000…arrow_forwardGeneral Accountarrow_forwardPlease solve this general accounting issuearrow_forward
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