CHAPTER # 9 PARTNERSHIP DISSOLUTION /...

JAHANGEER KHAN

PARTNERSHIP DISSOLUTION/LIQUIDATION

CHAPTER # 9

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CHAPTER # 9

PARTNERSHIP DISSOLUTION / LIQUIDATION

PRINCIPLES OF ACCOUNTING XII

JAHANGEER KHAN

JAHANGEER KHAN


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WHAT THE EXAMINER USUALLY ASK?

Liquidation Summary.

Solvent partners.

Insolvent partners.

General Journal entries.

Solvent partners.

Insolvent partners.

Partners’ Capital account and Cash account.

Multiple Choice Questions (MCQs).

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DISSOLUTION / LIQUIDATION OF PARTNERSHIP Liquidation of partnership means the termination of partnership. It means that the firm will not operate

further.

In liquidation process, all the assets (inventory and fixed assets) are sold for cash either more

than their book value or less than their book value.

The profit or loss arises, if any, from the sale of assets are recorded in the realization account.

Then accounts receivable are collected from customer (equal to book value or less than value)

and payments are paid to the suppliers.

Again the differences, if any, are recorded in the realization account.

Goodwill of the firm are closed to the partners; account by debiting partners’ account and credit

the goodwill account.

Now the realization (profit or loss) is transferred to the partners’ capital account.

If partners’ capital account show negative balance after the distribution of realization, it is

necessary to know that the partner is solvent or insolvent.

If the partner is solvent, he/she can contribute cash from his private sources.

But if the partner is insolvent, he/she cannot contribute cash and his/her loss will have to be

distributed among the other partners.

STEPS OF LIQUIDATION Step # 1: Sale of all assets except cash.

Step #2: Payment of liabilities, (if possible).

Step # 3: Distribution of gain or loss.

Step # 4: Check the negative capital balances of partners, (if any). Also check solvent or

insolvent partner. Step # 5: Distribution of remaining cash.

LIQUIDATION PROCESS

Entry to Record Sale of Other Assets on Loss: Cash DR. (with sale proceed amount)

Realization DR. (with the amount of loss on sale of assets)

Other assets CR. (with amount of assets)

(To record the sale of other assets on loss)

Entry to Record Cash Collected from Customers Less Than Actual Amount: Cash DR. (with the amount received from customers)

Realization DR. (with the amount of loss on collection)

Accounts receivable CR. (with the amount of receivable)

(To record the cash collected from customers)

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Entry to Record Payment of Liability Less Than Actual Amount: Accounts payable DR. (with the amount of liabilities)

Realization CR. (with amount of gain on payment)

Cash CR. (with the amount of payment)

(To record the payment of liability)

Entry to Record Distribution of Goodwill: Partner A’s capital

DR. (with the share of partner) Partner B’s capital DR. (with the share of partner) Partner C’s capital DR. (with the share of partner)

Goodwill CR. (with the amount of goodwill)

(To record the distribution of goodwill)

Entry to Record Distribution Loss on Realization: Partner A’s capital

DR. (with the share of partner) Partner B’s capital DR. (with the share of partner) Partner C’s capital DR. (with the share of partner)

Realization CR. (with amount of loss on realization)

(To record the distribution of loss on realization)

Entry to Record Distribution Gain on Realization: Realization DR. (with the amount of gain on realization)

Partner A’s capital

CR. (with the share of partner) Partner B’s capital CR. (with the share of partner)

Partner C’s capital DR. (with the share of partner)

(To record the distribution of gain on realization)

Entry to Record Cash Contributed by Solvent Partner: Cash DR. (with the amount contributed by partner)

Partner A’s capital CR. (with the amount contributed)

(To record the cash contributed by partner to meet capital deficiency)

Entry to Record Capital Deficiency of Insolvent Partner Meet by Other

Partners: Partner B’s capital

DR. (with the share of partner)

Partner C’s capital DR. (with the share of partner)

Partner A’s capital

CR. (with insolvent partner’s capital)

(To record the capital deficiency met by other partner)

Entry to Record Distribution of Remaining Cash: Partner B’s capital

DR. (with the remaining capital amount) Partner C’s capital DR. (with the remaining capital amount)

Cash CR. (with remaining cash amount)

(To record the distribution of remaining cash)

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ILLUSTRATION # 1: (Simple Liquidation) 1999 Regular & Private – BIEK

The balance sheet of Ahmed, Bashir and Rahim who shared profits and losses in the ratio of

5:3:2 is as follows on December 31, 1998:-

ASSETS EQUITIES

Cash 35,000 Accounts payable 20,000

Other Assets 165,000 Ahmed Capital 70,000

Bashir Capital 60,000

Rahim Capital 50,000

200,000 200,000

On the same date they decided to liquidate their business.

REQUIRED

Give necessary journal entries in proper form and prepare partner’s capital accounts under each of

the following cases separately:-

(a) Other assets were sold for cash Rs.200,000.

(b) Other assets were sold for cash Rs.80,000.

Accounts payable were paid in full and the balance paid to partners in each case.

SOLUTION # 1:

Case (a):

________ PARTNERSHIP

GENERAL JOURNAL

Date Particulars P/R Debit Credit

1. Cash 200,000

Realization 35,000

Other assets 165,000

(To record the sale of other assets in gain)

2. Accounts payable 20,000

Cash 20,000

(To record the payment of accounts payable)

3. Realization 35,000

Ahmed Capital (35,000 x 5/10) 17,500

Bashir Capital (35,000 x 3/10) 10,500

Rahim Capital (35,000 x 2/10) 7,000

(To record the distribution of gain among partners)

4. Ahmed Capital (70,000 + 17,500) 87,500

Bashir Capital (60,000 + 10,500 70,500

Rahim capital (50,000 + 7,000) 57,000

Cash (35,000 + 200,000 – 20,000) 215,000


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GENERAL LEDGER

Ahmed Capital

4. Cash 87,500 Balance 70,000


87,500 87,500

Bashir Capital

4. Cash 70,500 Balance 60,000


70,500 70,500

Rahim Capital

4. Cash 57,000 Balance 50,000


57,000 57,000

SOLUTION # 1:

Case (b):


GENERAL JOURNAL


1. Cash 80,000

Realization 85,000 Other assets 165,000 (To record the sale of other assets on loss)

2. Accounts payable 20,000 Cash 20,000 (To record the payment of accounts payable)

3. Ahmed Capital (85,000 x 5/10) 42,500 Bashir Capital (85,000 x 3/10) 25,500 Rahim Capital (85,000 x 2/10) 17,000 Realization 85,000 (To record the distribution of loss among partners)

4. Ahmed Capital (70,000 – 42,500 27,500

Bashir Capital (60,000 – 25,500) 34,500

Rahim capital (50,000 – 17,000) 33,000

Cash (35,000 + 80,000 – 20,000) 95,000


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GENERAL LEDGER

Ahmed Capital

3. Realization 42,500 Balance 70,000

4. Cash 27,500

70,000 70,000

Bashir Capital


4. Cash 34,500

60,000 60,000

Rahim Capital


4. Cash 33,000

50,000 50,000

ILLUSTRATION # 2: (Liquidation when Cash is not Equal to Capital Balances) 2000 Regular & Private – BIEK

Farooq & Ismail were equal partners. They liquidate their business. After all assets were sold &

liabilities of the firm paid off, there was cash balance of Rs.20,000. The capital balances of

partners before dividing profit or loss on realization were Farooq Rs.15,000 & Ismail Rs.10,000.

REQUIRED

a) Prepare Liquidation Summary.

b) Give journal entries showing distribution of profit or loss on realization.

c) Give journal entries to record the distribution of cash between partners.

d) Give posting in the partner’s capital accounts reflecting the final settlement.

SOLUTION # 2: Required (a):


LIQUIDATION SUMMARY

Particulars

Cash

Farooq

Capital

Ismail

Capital

Balances 20,000 15,000 10,000 Distribution of loss on realization (1:1) (2,500) (2,500) Balances 20,000 12,500 7,500 Distribution of remaining cash (20,000) (12,500) (7,500)

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SOLUTION # 2: Required (b & c):


GENERAL JOURNAL


1. Farooq Capital 2,500

Ismail Capital 2,500 Realization 5,000 (To record the distribution of loss on realization)

2. Farooq Capital 12,500 Ismail Capital 7,500 Cash

(To record the distribution of remaining cash) 20,000

SOLUTION # 2: Required (d):


GENERAL LEDGER

Farooq Capital


2. Cash 12,500

15,000 15,000

Farooq Capital


2. Cash 7,500

10,000 10,000

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PRACTICE QUESTIONS

Question # 1: 2011 Regular – BIEK Erum & Company’s balance sheet on September 30, 2010 was as under:

ASSETS EQUITIES

Cash Rs. 50,000 Erum’s Capital Rs. 350,000 Other assets Rs. 400,000 Kiran’s Capital Rs. 100,000

Rs. 450,000 Rs. 450,000

Erum and Kiran share profit/losses in the ratio of 3:2 respectively. On September 30, 2010 they liquidate

their partnership business. Other assets are sold for Rs.150,000/- cash.

REQUIRED

Prepare the necessary entries to record the liquidation of the partnership.

Question # 2: 1993 Regular & Private – BIEK L. M and N were partners, sharing profits and losses on the ratio of 3:2:1 respectively. They decided to

dissolve the firm effective December 31, 1992. Just before liquidation, the firm’s position was as

follows:-

ASSETS EQUITIES

Cash Rs.70,000 A/c Payable 60,000 Other assets 350,000 L Capital 180,000 M Capital 120,000 N Capital 60,000 The other assets realized Rs.150,000 cash. Liabilities were paid in full. The remaining cash was

distributed among the partners.

REQUIRED

a) Give necessary entries in the General Journal of the firm to record the liquidation.

b) Prepare partner’s capital account and cash account.

Question # 3: 2001 Regular & Private – BIEK The balance sheet of Azhar and Ashraf who share profit s and losses in the ratio of 2:3 is as follows on

December 31, 2000:

ASSETS EQUITIES

Cash 5,000 A/c payable 20,000

Other Assets 115,000 Azhar Capital 40,000

Ashraf Capital 60,000

120,000 120,000

On that date the partners liquidated their business. Other assets were sold for Rs.65,000. Liabilities were

paid off and the available cash distributed among the partners.

REQUIRED

Give entries in General Journal relating to liquidation and final settlement of partner’s accounts.

Question # 4: 1998 Regular & Private – BIEK Nasim, Halim and Salim were partners in “Climax Traders” sharing profits and losses in the ratio of

2:2:1. Their capital balances on November 25, 1997 were Rs.80,000; Rs.60,000 and Rs.40,000

respectively. Accounts payable of the firm amounted to Rs.35,000. Balance of cash in hand was

Rs.40,000 and the sundry assets valued at Rs.175,000.

As the firm had been suffering recurrent operating losses, the partners decided to liquidate the firm.

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REQUIRED

a) Give journal entries in proper form under each of the following assumptions separately:

(i) Sundry assets were sold for Rs.225,000. The liabilities were paid off and the balance of cash

distributed amongst the partners.

(ii) Sundry assets were sold for rs.75,000. The liabilities were paid off and the partners were

returned their capitals.

b) Make postings to the partner’s capital accounts under each assumption and rule off the accounts.

Question # 5: 2008 Regular & Private – BIEK Nizam, Nadeem and Akram are partners sharing profits and losses in the ratio of their capitals. On 15th

May, 2008 the firm’s position stood as under:

Cash Rs.10,000; Other assets Rs.240,000; Accounts payable Rs.50,000; Nizam’s Capital Rs.100,000;

Nadeem’s Capital Rs.50,000 and Akram’s Capital Rs.50,000.

On this date they decided to dissolve the partnership.

REQUIRED

Pass entries in General Journal relating to dissolution and final settlement among the partners under each

of the following cases separately:

a) If other assets were realized cash Rs.260,000 and accounts payable were paid in full.

b) Other assets were sold for Rs.220,000 cash and accounts payable were paid in full.

Question # 6: 2013 Regular – BIEK Saad, Maaz and Bilal are partners sharing profit and losses in the ratio of their capitals. On July 1, 2012

the firm positionis as under:

Cash Rs.30,000/-, Other assets Rs.720,000/-, Accounts payable Rs.150,000/-, Saad Capital Rs.300,000/-,

Maaz Capital Rs.150,000/- and Bilal Capital Rs.150,000/-. On this date they decided to dissolve the

partnership. Other asserts were sold for Rs.800,000/- and accounts payable were paid in full.

REQUIRED

Record General Journal entries related to dissolution and final settlement among the partners.

Question # 7: 2013 Private – BIEK X, Y and Z were partners sharing profit and loss in the ratio of 3:2:1 respectively. They decided to

dissolve the firm on December 31, 2012. Just before liquidation, the balance sheet was as follows:

ASSETS EQUITIES

Cash Rs.140,000 Accounts payable 120,000 Other assets ? X – Capital 360,000

Y – Capital 240,000

Z – Capital 120,000

Total assets ? Total equities ?

Other assets were sold for Rs.460,000 cash liabilities were paid in full. The remaining cash was

distributed among the partners.

REQUIRED

Prepare necessary entries for liquidation of firm in General Journal.

Question # 8: 1996 Regular & Private – BIEK On December 31, 1995, the balance sheet of M/s. Amjad, Nasir, Khursheed partners, who shares profits

and losses in the ratio of 4:3:2 respectively, showed as under:-

ASSETS EQUITIES

Cash 50,000 Accounts payable 30,000 Accounts receivable 60,000 Notes payable 10,000

Merchandise inventory 75,000 Amjad, Capital 90,000

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Equipment Furniture

30,000

15,000

Nasir Capital Khursheed Capital

60,000

40,000

230,000 230,000

On this date they liquidate their business. All the accounts receivable were collected and all assets other

than cash and furniture were sold out for cash, total amount being Rs.147,000. The furniture was taken

over by Amjad at agreed market price of Rs.12,300. The liabilities and partner’s capital accounts were

settled with the available cash.

REQUIRED

(i) Give necessary entries in the General Journal of the firm to record the above process of

liquidation.

(ii) Prepare partner’s capital accounts and also cash account.

Question # 9: 2002 Private – BIEK The following data are taken from the accounting records of ABC partnership for the year ended Dec. 31,

2001.

ASSETS EQUITIES

Cash 20,000 Liabilities 40,000

Machinery 122,000 A – Capital 80,000 Income summary (Loss) 36,000 B – Capital 40,000

C – Capital 18,000

178,000 178,000

A, B and C share profits and losses in the ratio of 1:2:3 respectively. They decided to liquidate the

partnership on Dec. 31, 2001. The machinery was sold for Rs.140,000/- cash and the creditors were paid

off in full settlement cash Rs.34,000/-.

REQUIRED

(i) Pass entries in general journal to record the:

a. Sale of machinery.

b. Payment of liabilities.

c. Distribution of gain or loss on realization among partners.

d. Payment to partners in final settlement.

(ii) Prepare statement of partners’ capitals showing final settlement.

Question # 10: 2002 Regular – BIEK Laiq, Mansoor and Nadir were partners sharing profits and losses in the ratio of 3:2:1 respectively. They

decided to dissolve the firm effective as on December 31, 2001. Just before liquidation the firm’s position

was as follows:-

Cash + Other assets = A/cs payable + Laiq Capital + Mansoor Capital + Nadir Capital

140,000 + ? = 120,000 + 360,000 + 240,000 +120,000 The other assets realized were Rs.460,000/- cash. Liabilities were paid in full. The remaining cash was distributed among the partners.

REQUIRED

(i) Give necessary entries in general journal of the firm for liquidation.

(ii) Prepare partners’ capital account and cash account.

Question # 11: 2003 Regular – BIEK Adnan. Anwar and Azeem were partners, sharing profit and loss in the ration of 1:1:3. They liquidate

their business on Dec. 31, 2002. On that date their balance sheet showed as follows:

ASSETS EQUITIES

Cash 40,000 A/c Payable 10,000

Other Assets 150,000 Adnan Capital 70,000

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Anwar Capital 60,000

Azeem Capital 50,000 Other assets were sold for Rs.50,000/- cash. They paid off all liabilities. Partners are solvent and can

contribute any amount to meet the deficiency from their private resources.

REQUIRED

Make entries in General Journal relating to liquidation and final settlement. Prepare partner’s capital

account.

Question # 12: 1991 Regular & Private – BIEK Salman, Kamran and Adnan were partners sharing profits and losses in the ratio 3:1:1 respectively. They liquidate their business on December 31, 1990. On that date their balance sheet showed as follows:

ASSETS EQUITIES

Cash 12,000 Accounts payable 60,000 Other assets 180,000 Salman capital 80,000 Kamran capital 40,000

Adnan capital 12,000

192,000 192,000

Other assets were sold for Rs.80,000. Adnan is personally insolvent and cannot contribute any amount to

meet his deficiency. Liabilities and solvent partners account are settled out of available cash.

REQUIRED

(a) Give necessary General Journal entries to give effect to the above transactions.

(b) Prepare Cash and Partner’s Capital Accounts and post the above journal entries to these accounts.

Question # 13: 1994 Regular & Private – BIEK Atiq, Hilal and Fahim were partners sharing profits and losses in the ratio of 3:1:1. They liquidated their business on December 31, 1993. On that date their balance sheet showed as follows:-

ASSETS EQUITIES

Cash Rs.6,000 A/c Payable Rs.30,000 Other assets 90,000 Atiq Capital 40,000 Hilal Capital 20,000 Fahim Capital 6,000 96,000 96,000

Other assets were sold for Rs.40,000. Fahim is insolvent and cannot contribute any amount to meet his

deficiency. Liabilities and solvent partners’ accounts are settled out of available cash.

REQUIRED

(a) Entries in the General Journal of the firm relating to liquidation and final settlement of accounts.

(b) Partners’ capital account.

Question # 14: 2012 Private – BIEK Ashraf, Arif and Inam were partners sharing profits and losses in the ratio of 3:2:5 respectively. They

liquidate their business on December 31, 2011. On this date, their balance sheet showed as follows:

ASSETS EQUITIES

Cash Rs.20,000 Accounts payable Rs.60,000 Other assets Rs.280,000 Ashraf Capital Rs.90,000

Arif Capital Rs.70,000

Inam Capital Rs.80,000

Total Assets Rs.300,000 Total Equities Rs.300,000

Other assets were sold for Rs.80,000. Accounts payable are paid in full. Partners are solvent except Inam

who does not contribute any amount to meet the deficiency. All available cash is distributed among the

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partners.

REQUIRED

Make the necessary General Journal entries to give effect to the above transactions.

Question # 15: 2003 Private – BIEK Balance sheet data of the partnership firm of Shamim and Fahim on March 31, 2003 are as follows:

Assets: Cash Rs.2,000; Merchandise Rs.90,000; Land Rs.40,000; Goodwill Rs.18,000.

Equities: Accounts payable Rs.30,000; Shamim’s Capital Rs.40,000; Fahim’s Capital Rs.80,000.

On this date Shamim and Fahim decided to dissolve the partnership firm. They sold merchandise and land

for Rs.36,000 and Rs.46,000 respectively and paid Rs.27,000 in full settlement of accounts payable. The partners share profit/loss in the ratio of their capital. Akhter and Hafeez are partners sharing profit and losses I the ratio of 2:1 respectively. On January 5th, 2011 they decided to dissolve their firm. On this date, their balance sheet showed as follows:

REQUIRED

Prepare:

(i) General Journal entries.

(ii) Partners’ Capital accounts and cash account.

Question # 16: 2011 Private – BIEK Akhter and Hafeez are partners sharing profit and losses I the ratio of 2:1 respectively. On January 5th , 2011 they decided to dissolve their firm. On this date, their balance sheet showed as follows:

ASSETS EQUITIES

Cash Rs. 60,000 Accounts payable Rs. 50,000 Merchandise inventory Rs. 40,000 Notes payable Rs. 10,000 Supplies Rs. 50,000 Akhter Capital Rs. 140,000 Fixed assets Rs. 150,000 Hafeez Capital Rs. 100,000 The partners realized Rs.90,000 from the sales of assets (except cash) and paid the liabilities in full.

REQUIRED Make necessary entries in General Journal relating to the liquidation of the firm till final settlement of accounts of the liabilities and payment of partners.

Question # 17: 1995 Regular & Private – BIEK Rustom and Sohrab were partners sharing profits and losses in the ratio of their capitals. On the

dissolution of the firm their capital balances were Rs.30,000 and Rs.40,000 respectively. After all the

assets were realized and liabilities paid off, the firm’s cash balance stood at Rs.63,000.

REQUIRED

Give entries in General Journal of the firm for profit or loss on realization and distribution of

cash among partners. Show necessary computations.

Question # 18: 2005 Regular & Private – BIEK Anis, Qamer and Mehdi are equal partners in a business with capital balances of Rs.231,200; Rs.177,200

and Rs.191,600 respectively. The current year of operation did not go well and the partners finally

decided to dissolve the partnership. On December 31, after the assets were converted to cash and all the

creditors were paid, only Rs.60,000 cash remained in the firm.

REQUIRED

(i) Compute capital balances of partners after the realization of assets and payments of liabilities.

(ii) Make journal entry to record the cash receipt from the deficient partner and also the entry for

the final disbursement of cash to partners.

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Question # 19: 2007 Regular & Private – BIEK Arshad and Rashid were equal partners. They liquidated their business. After all assets were sold and

liabilities of the firm were paid off, there was cash balance of Rs.40,000. The capital balances of partners

before dividing profit or loss on realization were of Arshad Rs.30,000 and Rashid Rs.20,000.

REQUIRED

(i) Prepare liquidation summary.

(ii) Give journal entries showing the distribution of profit or loss on realization.

(iii) Give journal entries to record the distribution of cash between partners.

(iv) Gove posting in the partner’s capital account reflecting the final settlement.

Question # 20: 2009 Regular & Private – BIEK The IMO partnership is being liquidated. After all liabilities have been paid and all assets sold, the

balance of partner’s capital accounts are as follows:

Akram Rs.420,000 credit balance; Munawwar Rs.160,000 debit balance; Owais Rs.530,000 credit

balance. The partners share profits and losses as follows:

Akram 10%; Munawwar 60%; Owais 30%.

REQUIRED

If all assets are sold out and all liabilities are paid, estimate the cash and tell how it should be distributed

and recorded in the general journal. Munawwar in personally insolvent and nothing can be recovered

from him.

Question # 21: 2012 Regular – BIEK The partnership of Saad, Usman and Daniyal is in the process of liquidation. After selling assets, paying

liabilities and distributing loss on liquidation, partners’ capital accounts showed balances as follows:

Saad’s capital credit Rs.127,000; Usman’s capital debit Rs.26,000; Daniyal’s capital credit Rs.41,000.

REQUIRED

a. Determine the amount of cash available for distribution.

b. Give General Journal entries to record payment to Saad and Daniyal, assuming that:

i. Usman is solvent ii. Usman is insolvent

Question # 22: 2005 Regular & Private – BIEK In the process of dissolution of X, Y, Z partnership, non-cash assets were sold for Rs.50,000 and the related gain or loss on realization resulted in debits to capital accounts of partners X, Y and Z for Rs.12,000; Rs.9,000 and Rs.9,000 respectively.

REQUIRED

(i) Determine the gain or loss on the realization of assets.

(ii) Determine the partners’ profit and loss as per capital ratio.

(iii) Compute the book value of the non-cash assets sold.

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MULTIPLE CHOICE QUESTIONS (MCQS)

1. If all partners, but one, are insolvent it is:

a) Dissolution of an agreement b) Dissolution of firm c) May or may not cause dissolution d) None of above

2. If a partner takes over an asset of the firm, his capital account:

a) Will be debited with the amount as agreed

b) Will be credited with the market value of the asset

c) Will be debited with book value of the asset

d) None of above

3. Loss on realization is distributed among partners: a) According to profit and loss ratio b) According to capital ratio c) As decided among them d) None of above

4. Loss on realization is: a) Debited to partners’ capital account b) Credited to partners’ capital account c) Credited to realization account d) None of the above

5. Balance of realization account is transferred to the capital account of partners in:

a) Capital ratio b) Profit sharing ratio c) Interest ratio d) Equally

6. The balance left in the capital accounts in case of dissolution is settled by:

a) Revaluation account b) Bank account c) Realization account d) Profit & loss appropriation account

7. Realization account, operated by partnership business, is called:

a) Asset b) Temporary account c) Contra asset d) None of these

8. When partnership is dissolved, the final task is:

a) Payment of liabilities b) Payment to partners c) Payment of expenses d) Payment to employees

9. If assets are sold more than book value, realization account will be:

a) Credited b) Debited c) Not recorded d) None of these

10. In case of liquidation of a firm, assets are:

a) Donated b) Distributed c) Sold d) Revalued

11. If partner’s capital account has a deficit balance and can contribute any amount to meet his/her

deficiency, that partner is known as:

a) Solvent b) Debtor c) Insolvent d) Creditor

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12. The account used for liquidation process is:

a) Revaluation account b) Income summary account c) Realization account d) Closing account

13. In liquidation, the final cash is distributed among the partners:

a) Equally b) In agreed ratio c) According to final capital balances d) According to opening capital balances

CHAPTER # 9 PARTNERSHIP DISSOLUTION /...

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