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  • Financial Accounting: Chapter 12: Partnerships Quiz

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    Khalid
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    Hewitt and Patel were partners sharing gains and losses equally. They decided to terminate their partnership. Hewitt's capital balance was $28,000 and Patel's was $18,000. After selling assets and paying liabilities, there was $35,000 cash remaining. The questions ask to calculate any gain or loss on realization, how to divide that gain or loss between the partners, and how to divide the remaining cash.

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    Quiz 2 Partnership B

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    Hewitt and Patel were partners sharing gains and losses equally. They decided to terminate their partnership. Hewitt's capital balance was $28,000 and Patel's was $18,000. After selling assets and paying liabilities, there was $35,000 cash remaining. The questions ask to calculate any gain or loss on realization, how to divide that gain or loss between the partners, and how to divide the remaining cash.

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    © All Rights Reserved
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    22 views1 page

    Financial Accounting: Chapter 12: Partnerships Quiz

    Uploaded by

    Khalid
    Hewitt and Patel were partners sharing gains and losses equally. They decided to terminate their partnership. Hewitt's capital balance was $28,000 and Patel's was $18,000. After selling assets and paying liabilities, there was $35,000 cash remaining. The questions ask to calculate any gain or loss on realization, how to divide that gain or loss between the partners, and how to divide the remaining cash.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Financial Accounting

    Chapter 12: Partnerships


    Quiz

    1. Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their
    partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively.
    After all noncash assets are sold and all liabilities are paid, there is a cash
    balance of $35,000.

    a. What is the amount of a gain or loss on realization? (5)


    b. How should the gain or loss be divided between Hewitt and Patel? (10)
    c. How should the cash be divided between Hewitt and Patel? (10)

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