David Oliver and Umar Ansari, with capital balances of $46,000 and $62,000, respectively, decide to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is $135,000 of cash remaining. If the partners share income and losses equally, how should the cash be distributed? If an amount is zero, enter in "0". Oliver and Ansari Distribution of Cash Oliver Ansari Total Capital balances before realization $ $ $ Division of gain on realization Capital balances after realization $ $ Cash distributed to partners Final balances $ $
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.
Distribution of Cash Upon Liquidation
David Oliver and Umar Ansari, with capital balances of $46,000 and $62,000, respectively, decide to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is $135,000 of cash remaining. If the partners share income and losses equally, how should the cash be distributed?
If an amount is zero, enter in "0".
| Oliver and Ansari |
| Distribution of Cash |
| Oliver | Ansari | Total | |
| Capital balances before realization | $ | $ | $ |
| Division of gain on realization | |||
| Capital balances after realization | $ | $ | |
| Cash distributed to partners | |||
| Final balances | $ | $ |
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