0:00
Hello everyone.
00:01
So in this given question we need to prepare general entries for liquidation of partnership.
00:07
So firstly we'll make summary allocations to understand it better.
00:13
So in the question it is given opening balance for cash is 1 ,000.
00:21
For non -cash assets, 10 lakhs, liabilities of 2 .50 ,000.
00:32
Capital of partner e, 3 .000.
00:36
Lac, partner a, 2 ,10 ,000 and partner l, 3 ,090 ,000.
00:51
Now as partner l is becoming insolvent and remaining partners will share the remaining profits or losses.
01:01
Now we will sell non -cash assets which in the question is given is sold for 4 ,000 thousand and we'll deduct it from here so non -cash assets will become zero now the we'll calculate loss on sale of non -cash assets loss on sale of non -cash assets that is non -cash assets was worth 10 lakhs and it was sold for 4 .60 ,000 so there's a loss of 5 lakhs 40 ,000 now the new profit sharing ratio is 14 is to 10 so the losses will be divided between the partners in the this particular ratio only so partner e is 5 .40 ,000 multiplied by 14 divided by 12 24 which gives this 3 .5 .15 ,000 and talking about partner at a 5 -40 ,000 multiplied by 10 divided by 24 which gives us 2 .25 ,000.
02:37
Now this means that both the remaining partners will share the loss and the amount will be 315 ,000 for e and 2 .25 ,000 for a.
02:54
And partner l has already become insolvent.
02:58
Now we'll pay off our liabilities, that is 2 .50 ,000.
03:05
So this is 2 ,000 -over hair from cash.
03:09
It's deducted and liabilities is also deducted.
03:14
Now, we'll calculate our remaining cash.
03:17
So we'll calculate this and we'll get 3 ,000000 as our remaining cash...