Liquidation of partnership : Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation. To choose: the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

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Answer 1

Question

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

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Answer 2

Question

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

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Answer 3

Question

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

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Answer 4

Question

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

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Answer 5

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

Answer 6

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

Answer 7

Chapter 16, Problem 16.1.3E

To determine

Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any liquidation ratio or profits or loss ratio for distribution of remaining balance, it is distributed using normal profit and loss ratio during partnership’s operation.

To choose:the correct answer to determine amount distributed to each partner on liquidation when partnership is liquidated in instalments as cash become available, if inventory costing $200,000 is sold for $140,000.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2Q Ch. 16 - Prob. 16.3Q Ch. 16 - Prob. 16.4Q Ch. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6Q Ch. 16 - Prob. 16.7Q Ch. 16 - Prob. 16.8Q Ch. 16 - Prob. 16.9Q Ch. 16 - Prob. 16.10Q

Solution Summary: The author explains that winding-up and liquidation of a partnership begin after its dissolution.

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Chapter 16 Solutions