Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help prepare the accout required since the patners are dissolving the patnership (coming to an end) Xen, Yen and Zen are in partnership and share

image text in transcribed

help prepare the accout required since the patners are dissolving the patnership (coming to an end)

Xen, Yen and Zen are in partnership and share profits and losses in the ratio 3:4:5. On 1 March 20.9 they decided to dissolve the partnership. They resolved that assets should realized when reasonable offers are received. The partners decided that any available cash should be paid over to them monthly. On the dissolution date, the statement of financial position of the partnership is as follows: Partnership Xen, Yen and Zen Statement of financial position as at March 20.9 ASSETS Current assets 38,000 Total assets 38.000 EQUITY AND LIABILITIES Equity Capital: Xen 10,000 Yen 6,000 Zen 2,000 Total equity 18,000 Non-current liabilities Long term borrowings Xen 6,000 Zen 4,000 Total non-current liabilities 10,000 Current liabilities Trade and other payables 10,000 Total equity and liabilities 38.000 Additional information: 1. There is no cash included in the current assets of N$38,000 2. As cash becomes available, it should be applied in the following sequences: i. Trade and other payables ii. Borrowings from partners; and then ili. Repayment of capital. 3. During the first six months after the dissolution date, the sundry assets are sold as follows: 31. Mar N$5,000 30. April N$10,000 31. May N$5,000 30. June N$1,000 31. Jul N$4,400 31. Aug N$ 600 N$ 26,000 REQUIRED: 1) Determine the amounts of the partner's equity which exceed the profit sharing ratio (10 marks) 2) Classify the partners' capital repayment (5 marks) 3) Prepare a memorandum which indicates how cash received monthly will be distributed so that no partner is expected to make a later repayment. (10 marks) 4) Prepare the capital accounts of the partners (5 marks) 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Integrated Audit Practice Case

Authors: David S. Kerr, Randal J. Elder, Alvin A. Arena

6th Edition

ISBN: 0912503564, 9780912503561

More Books

Students also viewed these Accounting questions

Question

=+ (c) Show that a ,, converges to some a > 0.

Answered: 1 week ago