微观经济学Accounting for partnerships参考.pptVIP

Some partnership exception, if you want to know more, look it up from your text. Husband and Wife also form a partnership but might not be looking for profit (love, companionship or a lot more) An example of Liquidation of Partnership Please refer to text book P. 550, The Ace Partnership balance sheet shown on figure 13.16 Assets Liability OE Cash 5000 Notes payable 15000 acc rec 15000 A/C payable 16000 inventory 18000 Adam 15000 equipment 35000 Carey 17800 acc depre (8000) East 1200 65000 65000 Profit sharing ratio 3:2:1 Liquidation (cont.) Under no capital deficiency (P. 550) 1. Sell all non cash assets for $75,000 Enter the difference of $15,000 into an realisation account 2. Distribute the realisation to all partner according to profit ratio 3. Pay off all liabilities with cash 4. Work out the capital account of each partners and distribute remaining cash to the partners Done Liquidation (cont.) Under capital deficiency (P. 551- 552) (let’s assume the non cash assets can only be sold for $42000) 1. Sell all non cash assets for $42,000 Enter the difference of $18,000 into an realisation account on debit balance 2. Distribute the realisation to all partner according to profit ratio 3. Pay off all liabilities with cash 4. Work out the capital account of each partners and distribute cash to the Adam and Carey only. East got a debit bal in his capital and he is required to contribute a  sum of $1800 to the Partners Liquidation (cont.) Under capital deficiency (P. 553) (let’s assume the non cash assets can only be sold for $42000 and non payment of deficiency occur) 1. Sell all non cash assets for $42,000 Enter the difference of $18,000 into an realisation account on debit balance 2. Distribute the realisation to all partner according to profit ratio 3. Pay off all liabilities with cash 4. Wo