Liquidating partnership with capital deficiency

Rated 4.28/5 based on 749 customer reviews

This site uses cookies to store information on your computer.Some are essential to make our site work; others help us improve the user experience.After asset liquidation the partner capital accounts will have the following balances: Notice that Bills capital balance is now $(3,000) or negative.This means that he owes the partnership ,000 and can be legally sued by the other partners for that amount.If partnership net income is 0,000, the amount distributed to Gise should be: (Points : 1)0,000.6,000.0,000.4,000. Which of the following would not be recorded in the entry for the formation of apartnership? Brian will invest a truck with a book value of,000 and a fair value of ,000.(Points : 1)Accumulated depreciation Allowance for doubtful accounts Accounts receivable All of these would be recorded. The liquidation of a partnership may result from each of the following except the(Points : 1)bankruptcy of the partnership.death of a partner.retirement of a of the business by the partners. A partner invests into a partnership a building with an original cost of 0,000 andaccumulated depreciation of 0,000. As a result of theinvestment, the partner's capital account will be credited for (Points : 1)0,000.0,000.0,000.0,000. Sandy will invest a building with a book value of ,000 and a fairvalue of ,000 with a mortgage of ,000.

Creditors (Points : 1)must collect their claims equally from Milliken and collect the entire ,000 from collect their claims 75% from Milliken and 25% from not require Salinas to use his personal assets to satisfy the ,000 in claims. Partners Gary and Elaine have agreed to share profits and losses in an ratiorespectively, after Gary is allowed a salary allowance of ,000 and Elaine is allowed a salaryallowance of ,000. Brian will invest a truck with a book value of,000 and a fair value of ,000.

The Salinas-Milliken partnership is terminated when creditor claims exceed partnershipassets by ,000.

Salinas is a millionaire and Milliken has no personal assets.

Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss) as negative numbers using a minus sign.

If there is no amount or an amount is zero, enter "0". Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entry to allocate the partner's deficiency.

Leave a Reply