Distinguish between dissolution of a partnership and dissolution of a firm. A, B, and C are...
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Distinguish between dissolution of a partnership and dissolution of a firm. A, B, and C are partners sharing profits and losses in the proportion of 1/2,1/3 and 1/6. Below is their Balance Sheet as on 31/12/2018 when they decided to dissolve the firm. Liabilities Amount Assets Amount Sundry Creditors 50,000 Land & Buildings 70,000 A's Loan 10,000 Plant & Machinery 40,000 Capital accounts: Stock 25,000 A Debtors 20,000 B Cash 5,000 C 50,000 10,000 40,000 1,60,000 1,60,000 The partnership is dissolved and the assets are realized as follows: First Realisation Rs.40,000; Second Realisation Rs.30,000; Third realization Rs. 54,000; Fourth Realisation Rs. 7,000. Prepare a statement showing how the distribution should be made by following Proportionate Capital Method. Distinguish between dissolution of a partnership and dissolution of a firm. A, B, and C are partners sharing profits and losses in the proportion of 1/2,1/3 and 1/6. Below is their Balance Sheet as on 31/12/2018 when they decided to dissolve the firm. Liabilities Amount Assets Amount Sundry Creditors 50,000 Land & Buildings 70,000 A's Loan 10,000 Plant & Machinery 40,000 Capital accounts: Stock 25,000 A Debtors 20,000 B Cash 5,000 C 50,000 10,000 40,000 1,60,000 1,60,000 The partnership is dissolved and the assets are realized as follows: First Realisation Rs.40,000; Second Realisation Rs.30,000; Third realization Rs. 54,000; Fourth Realisation Rs. 7,000. Prepare a statement showing how the distribution should be made by following Proportionate Capital Method.
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In the given scenario the partners A B and C have decided to dissolve their partnership After realiz... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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