Question

. After the accounts are closed on April 3, prior to liquidating the partnership, the capital accounts of Almaz, Daniel, and Seifu are, Br. 20,000; Br.30,000; and Br. 10,000 respectively. Cash and non-cash assets total Br. 2,000 and Br. 61,000 respectively. Amounts owed to creditors total Br. 30,000. The partners share income and losses in the ratio of 2:1:1. Between April 3 and April 25, the noncash assets are sold for Br.21,000 and the partner with the capital deficiency pays deficiency to the partnership, and the liabilities are paid. Required: Prepare a statement of partnership liquidation, including A. The sales of asset and division of loss, B. The receipt of the deficiency (from the appropriate partner) C. The payment of liability​

Answer 1

Let’s prepare a statement of partnership liquidation based on the given information:

Sales of Assets and Division of Loss:

Non-cash assets are sold for Br. 21,000.

The total loss is calculated as follows:

Total assets (cash + non-cash) = Br. 2,000 + Br. 61,000 = Br. 63,000

Total liabilities = Br. 30,000

Total capital deficiency = Total assets - Total liabilities = Br. 63,000 - Br. 30,000 = Br. 33,000

The loss is divided among partners based on their income-sharing ratio (2:1:1).

Receipt of Deficiency:

The partner with the capital deficiency pays the deficiency amount (Br. 33,000) to the partnership.

Payment of Liability:

The remaining funds (if any) after paying liabilities are distributed to the partners.

Please note that the specific calculations for division of loss and distribution of remaining funds would depend on the exact amounts and the income-sharing ratio. You can adjust the numbers accordingly based on the given data.

Step-by-step explanation: