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 dis
Posted: Sun Apr 17, 2022 7:04 pm
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 iii.
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)
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 iii.
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)