Exam 28: Partnership Dissolution and Conversion to Company Status

In a partnership the double entry to record initial realisation expenses not paid is as follows:

After receipt of all monies on the dissolution of the partnership the realisation account has a debit Balance carried down of £8,000. Assuming there are two partners X and Y, sharing the profits and Losses equally. What is the double entry to clear the revaluation account?

When there is a credit balance brought down on the realisation account, this means that:

A partnership has reported profit for the year of £258,000 per the income statement. The partners had expected to make £300,000 so are not pleased with performance. The partnership has three partners (Simon, Mary and Anna). It is estimated that these partners would have earned the following amounts (Simon £90,000, Mary £80,000, Anna £65,000) had they been working elsewhere. The balance on Simon's capital account is £400,000, Mary's balance is £200,000 and Anna's is £300,000. The current rate of interest being earned on government gilts is 10%. Given this information, what is the partnership abnormal profit/ (loss) for the year?

What is the main purpose of a purchase of consideration account?

When there is a credit balance carried down on the realisation account, this means that:

The partners decide to dissolve the partnership. They are offered £40,000 for the building and the fixtures and fittings. Aoife agrees to take over one car at a value of £2,500 and Declan takes over the other remaining car at a value of £2,000. It turns out that £2,500 of the trade receivable are bad and the sundry payables have promised to give the partners, on average 10% discount on settlement of the debt owed to them if it is paid for on the 1 January 20X2. The loan will be paid off in full on that date. All the monies in and out will occur on the 1 January 20X2. The dissolution expenses amount to £2,200. Questions 1 to 4 should be answered from this following information Aoife and Declan are in partnership, sharing profits equally. Their draft statement of financial position is as follows: -What is the profit/ (loss) on realisation in the books of the partnership?

The partners decide to dissolve the partnership. They are offered £40,000 for the building and the fixtures and fittings. Aoife agrees to take over one car at a value of £2,500 and Declan takes over the other remaining car at a value of £2,000. It turns out that £2,500 of the trade receivable are bad and the sundry payables have promised to give the partners, on average 10% discount on settlement of the debt owed to them if it is paid for on the 1 January 20X2. The loan will be paid off in full on that date. All the monies in and out will occur on the 1 January 20X2. The dissolution expenses amount to £2,200. Questions 1 to 4 should be answered from this following information Aoife and Declan are in partnership, sharing profits equally. Their draft statement of financial position is as follows: -What payment/receipt from/to Aoife is required to close her capital account on the dissolution of the partnership?

The partners decide to dissolve the partnership. They are offered £40,000 for the building and the fixtures and fittings. Aoife agrees to take over one car at a value of £2,500 and Declan takes over the other remaining car at a value of £2,000. It turns out that £2,500 of the trade receivable are bad and the sundry payables have promised to give the partners, on average 10% discount on settlement of the debt owed to them if it is paid for on the 1 January 20X2. The loan will be paid off in full on that date. All the monies in and out will occur on the 1 January 20X2. The dissolution expenses amount to £2,200. Questions 1 to 4 should be answered from this following information Aoife and Declan are in partnership, sharing profits equally. Their draft statement of financial position is as follows: -What is the balance on the bank account, before the partners settle their capital account balances assuming all other transactions involving the bank have taken place?

In a company's statement of financial position goodwill is classed as:

The partnership is being dissolved and converted into a company. The realisation account after all the Assets and liabilities were adjusted to their fair value and the consideration posted has a credit balance Carried down of £10,000. Assuming there are two partners X and Y, sharing the profits and losses Equally. What is the double entry to clear the realisation account?

In the books of the partnership, how is the consideration received for the partnership treated. What is the double entry?

In a partnership the double entry to record realisation expenses paid is as follows:

The partners decide to dissolve the partnership. They are offered £40,000 for the building and the fixtures and fittings. Aoife agrees to take over one car at a value of £2,500 and Declan takes over the other remaining car at a value of £2,000. It turns out that £2,500 of the trade receivable are bad and the sundry payables have promised to give the partners, on average 10% discount on settlement of the debt owed to them if it is paid for on the 1 January 20X2. The loan will be paid off in full on that date. All the monies in and out will occur on the 1 January 20X2. The dissolution expenses amount to £2,200. Questions 1 to 4 should be answered from this following information Aoife and Declan are in partnership, sharing profits equally. Their draft statement of financial position is as follows: -What payment/receipt from/to Declan is required to close his capital account on the dissolution of the partnership?