12-3.7 Distribution of Cash UponLiquidation

Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate theirpartnership. Prior torealization, their capital balances are $12,000 and $8,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $15,000.

a. the amount of a gain or loss on realization

Loss

$

b.How should the gain or loss be divided between Hewitt and Patel?

Hewitt

Loss

Patel

Loss

c.How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0".

Hewitt and Patel

Distribution of Cash

Hewitt

Patel

Capital balances before realization

$

$

Division of gain or loss on realization

Balances

$

$

Cash distributed to partners

Final balances

$

$