when-a-partnership-dissolves-the-first-step-in-the-dissolution-process-is-to-________-a-allocate-the

Question

When a partnership dissolves, the first step in the dissolution process is to ________.
A. allocate the gain or loss on sale based on income sharing ratio
B. pay off liabilities
C. sell noncash assets
D. divide the remaining cash among the partners

Puneet Prajapati · Accepted Answer

because let&#x27;s start of a solution. Okay? So before understanding them main solution of the problem, they will understand the accounting accretion. Okay. Sorry what the accounting equation says. Okay, so what is it about in question? A six. Minus liabilities. Ik wisdom Older. Okay, this is what our accounting question sees. No. What is the meaning of accounting? Question. We will understand it. Let&#x27;s suppose you have, ah, business off selling foods and beverages to your customers. Okay, Now what happens? One of your customers frequently buys food and beverages from you and says that I will pay you a terrible regulator. So what will happen? Do you have a receivable against that food and various that has been sold sold to that customer? Okay, Now, let&#x27;s suppose you have sold $300. Okay? $3000 off force and beverages to person over a period of a month or over a period of 23 months. Okay, whatever. But a sex are those amount which are recoverable former customers. Okay. With John recoverable from your customers. Know what happens due process or to make that saleable products to your customer, you first have to buy raw materials from your from your suppliers. Okay, so you have purchased raw materials from your supplier. But what happened? You have not paid them. You also you want to say that I will pay You did that. I will be you. So that it is, uh, being leaders and receiving leaders. That mostly happens in every type of witness. Okay, He won in the case off services industry. Also, manufacturing industry. Also, this happens most of the times. So however, you have purchased raw material off $2000 and you as not you have not beat them. Okay? Know what happens? Do you have I was owners equity. Okay, we have on other owners. Equity of $1000. My $1000. Just a few 1000 minus 2000. They get $1000. Okay, so we haven&#x27;t district a meaning off $3000. We have understood the meaning of $2000. These are recoverable from customers. And these are people to supply us. What? What is the meaning of owners Equity? The meaning of winners equity is after being off all the liabilities from the amount of sex. Okay? After their collection, after the election off recoverable amounts from customer. And after paying off the liabilities we have generated that basically what I usually saved, they could be from business. It&#x27;s that big of a war for the owner of the business. OK, so this is the amount that one every take away from the business. So we have understood the meaning of Essex, the camp English in next come the autumn in solution. So we have a set minus liabilities equals stool, or is he know what happens in mathematics? Did you have in this room that whenever you will make are you will pass on this item level? It is item onto right inside of the equation. What will happen? It will become like this. Okay. Owner&#x27;s equity. Vai there. So by that minus and has been removed because it has been move right inside of the question. Okay. Is that clear? So this is our main solution to our portion and the choice, The choice of the present, this equation you very well know this. Okay, So the current choices be which says that which says that a SEC equals two liabilities plus owners equity. So the main solution of it for other problem is choice the Okay, That&#x27;s all part of a solution. Thank you.

Puneet Prajapati · Answer

So let&#x27;s understand the current solution. Okay? First, we will understand the meaning off owners. Okay. So I would make it more simply when? This day. Okay, victory for us holding capital that has bean and Mr By on that in the business. Who then day to day operations. Okay. And also owner stick Woody, they Ingres, if they will be more than whispered. Perfect. Okay, the venues. Now, it is very clear to you that court I have return here most of all it to first to capital. Okay, that has been in Mr There has been administered by, you know, in the business. Okay, during they day operations like owner&#x27;s equity, it&#x27;s difficult for us to the capital that has been in Mr Boehner in the business to run day to day operations on business. Okay, it is just a typical a moment that will that will be in district by by the older of the business who is willing to start the business. Okay. However, this amount will change. Oh, no. Maybe because it here do your business most prominently by that. So the owner&#x27;s equity change If there is, if they will be more than Miss Smith, Or we can say whenever the owners things, that is, that is our investment should be liquidated or desired from the business. So the owners equity change also, So they will be degrees and increasing the owner&#x27;s equity based on the items we have listed here like invest bearing, brawl fades, revenues. Okay, if these items will increase the owners in critical injuries if these I don&#x27;t really degrees the owners equitable degrees. Okay, so that is right. Let&#x27;s support the owner of business. Makes a profit for the car. India. So it is. It will be very on this that the profit will be only too good attributable to order. Okay, because he is darkest of this business. Okay, so that is why the owner&#x27;s equity abilities in case the revenue increases. There are also other secret increases by that. So because an increasing revenue will also imply an increasing profits. So there is a likewise increase in orders equity, engage them and Miss Mildew likes night. I suppose owner has been a big lottery. Okay, let&#x27;s say $100,000. So he is also looking for lucrative opportunities to raise funds. But now he has one the your big ticket. Now what will you do with them out that has been going by him? Hey, will invest doctor mom in police business enhanced or seek Otisville increase. Okay, because, I mean, they&#x27;re spending the business. I know what s portion is just that Each of the following is not which of the following choice will not in Jesus orders equity. So accusation off estates by incurring liabilities will not in breezy in case the what? Who is the owner&#x27;s equity? Okay, so because what happens when you will exchange the asset for Philip, you will get the assets. However, when you will anger the libraries also, so you will have more elaborate is on your balance sheet. Okay, Please make understand that for that insert, it&#x27;s on nothing but the recovery will most recovered. Ebola moans from the customers And what that celebrities just table hopes That&#x27;s all is off now. Please make a little effort. Okay? We will understand. Eluded that didn&#x27;t last problems know what happens whenever they will be exchange of us exporting during our liberties so it wouldn&#x27;t know it will never impact. It would never have any impact on the and That is why the correct choice is exchange up. I said spot including clarity&#x27;s. Okay, So correct choices. Okay, so that&#x27;s all forever. Solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution to win something. But first of all, before the example, we draw the first of all, understand the actually question behind this solution and works it. What is it? Let&#x27;s see. Sits minus liabilities. Equal. Get it? Actually, capital is used in traditional needs as a loan in relation, sophisticated. But just to quit, you stop already. Our date is Oh, precise differences. They have presides differences between stockholder&#x27;s equity and capital. However, we will understand. Listen later when we will face the problems. Okay, so we have our question said minus liability was to stop really pretty no electricity. Understand this equation, Tau Example. Because the visit will be a little complex at getting states to understand this. No, let&#x27;s see. Mr Green has business off blue business off and currently it has. It&#x27;s it&#x27;s oh, dollars I did and liabilities off. Daughter 200 through there licked Lewis. So what do we have? We have Mr Ri, which is dealing in business off clothing, like chasing the flutes from locally from Lydia are outside of the country importing, you know, a good material. Some outside of the country, local boundaries and selling the setting, the builds and about my beating. In such business, Mr Lee has a community sets off about 500. These events will be in terms off gash. Know what is in a second? That&#x27;s it is in a mountain which a person or an entity is likely to the sea. Our is expecting to receive in some later point in time. So a sex could be gash, which is which is guaranteed with the current, which the entity it&#x27;s currently holding in its bank guard in, you know, cash reserves or doctors. It is that the person who would like you to pay the person for whom subject is that considered as sex. So presently, Now, what are the liabilities? Lab, please. Uh, those are mom&#x27;s, which we have to be. Who? Other person. Like participles. We have predators or shock them. Decked Logan Back short, Longtime necked. These are other financial obligations which B which we have to pay off during the lifetime of the business. I love What? The accounting. A question in place. Let&#x27;s understand this. Also, a sick Linus like beauties equally do stock no water. What is the amount of dissecting never take something. What is the example of liabilities? 100. Now, what is this? Top of very pretty hours. So we have understood the meaning. Love This one, This one? No, we really understand the meaning of this. And after that, we will come to the conclusion that how many type off combinations we can produce with this question, So that will be able to go on. Push. So what is this top of that? It would be It is. It is the amount there, the business man whores in the business as is, huh? Only money was realization depends upon liquidation. Liquidation? Oh, business having bean there done such definition. It is simply the amount that deck mystery that Mr Three Wars in the business as his own darts a simple list. Thank you, Mr V. As a community of equity, wealth equally means on his own. Mr. Ray has a commuter belt off dollars. 300 in his business. After being off the liabilities from the A community, a sense and what it would be the insects. But maybe gash dictators, order receivers or what type of bank deposits he had so out after the bingo after thing off celebrities. Dollars. 200 from the assets. Whatever be the long left? After such activation off of the exits, whatever will be left will be actually beautiful to Mr as a business. And this will be start hold equity. So no. So the correct solution. So the correct choice. So the correct choice off off problem 13 is deep. Howdy. Because, Indy, this is I send less liabilities equal to stock up. It took it. So this is about the Actually, this is the actual question is that&#x27;s it minus liabilities? Because just talk it is. And from this a question. We cannot be right this equation in anything so that this white this option is not today and that this does not represent the actual impression. So the current choice a problem dirtiness. And thanks for the

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution. But given keys, first of all, people right over BC counting Grishin and from the F B. We&#x27;ll start with the institution. Okay. Okay, let&#x27;s see. We are We&#x27;re very, very willing to dealing the business off. Selling, selling close to our customers. Okay, in tow. Mainly textile business. But I don&#x27;t need a level, you know. So I do not have sufficient money to start the business. So what will I do? I will go to the misters. We go to my related Sze, I will go to my friends to raise the capital, to raise defendants to France to find to find my business. But Okay, so what happens? And a citizen amount? That s it is what What are the elements? First of all, I&#x27;m talking about them. Then we&#x27;ll move to the solution under six under a sex. Those are those amounts which are recoverable from anyone else, such as customers, depositors with whom we have deposited our money or the person&#x27;s the womb. We have advanced some off our cash reserves. Okay, Those recoverable amounts will be included in our sex and most importantly, cash in bank balance cash in bank balances. Less. I am writing. Bless. There is nothing. There isn&#x27;t a thing to confuse about. Get confused about it. It is just I&#x27;m, you know, trying to locate something else before writing anything. Okay, Gash bank balance. Bless. And you ballistics. No water. Then do ballistics. Let me show you. If I have to produce some clothes to say to our customers, we will have machines, the produce roads. We have vesting testing machine so that we can know that for type off. What type of quality? Off load via policing right now. Okay, for these are the items we will be. Oh, you know, listing under the under Tito sex. In contrast to their sex, the libraries are in contrast to asserts. Okay, in contrast to recovery bailamos lively Be able amount, sir. Considered in the landlady says outside. So there is no contrast against cash and bank balance. Okay, but I can write very precisely that it is sharp and long time dead like you take, you know, known for loan to purchase the house. Okay, yard leakers to purchase any type of property like that. So these amounts which are people after a certain period of time will be included in liabilities like, it is the money that you have to pay to someone for the benefits. You have a bit of a okay. No. What is that? Don&#x27;t equity. It includes capital greased. The officer Lawson. What is the meaning of capital? Raced everything. You very, very, very shortly. Okay, So capital raise beans. What? What amount of friends you have raised toe internally or externally, from within the organization. What from outside the organization that the money will be considered in equity. What we can also see very well include our profit and loss on during the period. In a pretty component, we can also it could be is also known as you can write it down. What I&#x27;m writing here. Okay. Take away from business off being all liabilities. Okay, I&#x27;m asking to write. You write down on all of this by because this becomes easier when you revise for your exams also. Okay, so these are the gums. Okay. Now let&#x27;s move to our main solution. What is our main solution? First of all, we will draw our basic question and exams also, wherever you go in most of the accounting concept, you will face accounting question as you are complimented. Topic to help you throughout the subject. Okay. No, the portion is asking those What will be the effect off issuing stocks. Okay. Issuing capital between stocks in exchange for escorts. First of all, I will brought a dragon for you so that you will be able to understand it. Matters like to suppose we have extent company okay, Willing toe start new loading business. Okay, we&#x27;re chart off firms as off. No. So it will Porto a company. The next company says that that ex company say&#x27;s toe a complete that ex company will give shares Love X company go Any company okay? And Indra done what he has to do. They will give a sex who x company who find the business purpose. Okay, this is very very this This transaction is very, very known to you that what&#x27;s happening here in the red line, the eight companies is giving a sex to x company so that I said sometimes all you can say, you know, cash bank balance machinery to start the new business. Okay, but for text company is giving to a shares off X shares of ex company to a company. These are ownership off issuing company who silencing Go. We will understand the shares. The Tom she is detailed capital that some provincial capital and like other terms in later future. Then we will face much detail problem. But just understand for the same Sekoff this solution that X is issuing begins it 10% 10% ownership off itself off ex company do a complete on in exchange ex companies receiving ex sex from a comic who started a project, that&#x27;s all. Okay, so they will be increasing its excite by there. So because the area here, the company is giving a search to X company. Okay, so they will be in Greece. Dinosaurs? That&#x27;s $1000. Okay, so there are no liabilities? I think so. Because there is no recoverable PayPal a mouse. However, as I have started here, that vote number the capital raised whatever defendants you will raised. You will include that amount here as villains. Okay, so you&#x27;ve been in $2000 here. So you have raised the capital. Who? The extent of $1000 from a company. You have received a sex from a come from a company. So the extent off $1000. So they&#x27;re on both side in Greece. We&#x27;ll get now. Let&#x27;s form the solution. If there are both side in grease. So the correct choice. Just if you have industrial this transaction, if you have in the strictest election, then it would not have bean much difficult. Oh, I understand this calculation, which I have just experience. I am, I am taking $1,000,000 just isn&#x27;t just as an example, Jubal, you can think it like this. Also, like we have received, the, uh, received has subsided. Plus, like we have received a sensible. So we&#x27;ll make in addition to the Essex if we have so And here we have sure shares are assured the ownership off our company to someone else like a complete. So we will also sure. So the larger make in addition to the duty Also, that is right. There is both side in Greece. Okay, so the correct choice for probably 28 days. Thank you

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current problem. Okay? So to begin with, we will start with the, you know, counting the basic accounting question. And then we will move to our main solution. Okay, so it&#x27;s a said minus lovely piece equals store equity. Okay, so let&#x27;s say to understand this basic accounting question. First of all, we need to understand that. What does the counting the question say&#x27;s Okay, so let&#x27;s suppose you are Oh, you are dealing in the business off selling real games. Okay. By selling the video game to the customers, you have generated revenue off housing. $1000. Okay, $1000. Bye bye. I every $1000 under the asset, I will tell you. So let&#x27;s suppose that you have sold the video games to your customers, but you are able to receive them out. Attn. This part okay, your customer is likely to pay you off. Let&#x27;s after 30 days of Peter. Okay, So whatever the amount that is receivable active at the future pointing, dying, that amount is known as a sec. Okay, So even if you have sold the video games to the customers, but still you have not been paid that amount is irrecoverable from the customer, so that will be considered as your I said. Okay, let&#x27;s suppose in processing the material of video games, do you need to purchase the material from someone else like your supplier so that you can persist the video games in tow? Saleable product. Okay, so for that you have imported someone from the outside of the country, okay? And you have important material off $500. You have important material of $500 by I have returned $500.50 head liabilities because a liability is an amount people for the for the benefits that has bean avail. Okay, Lake the or in simple terms, we can say liabilities and is an amount which is people like the future point at the future at a future point in later. Okay, Now, what is the equal devotion? $500 housing minus. I wondered because 500. What is this fight? One day? You can completely, you know, interpret this through the question that so they could be thrown business after being off all the ladies. Okay, so let&#x27;s support if you have $1000 deficits. Do you have Thompson, owners of physics. How that are They&#x27;re recoverable from the customers, but no. What happened? You have also liabilities off 502. You have to obey them. So after netting the recoverable and table amounts, you have $500 of equity backed that. It&#x27;s your personal amount that you will take up with this amount. A killer who, because that is a lian free amount you in free means nobody has the right to, you know, detached that amount from yourself. Because it is that take away from the business after being off all the liabilities. Okay, so we have understood the basic part of the question. Now, let&#x27;s move, lover. Basic salute. Those main solution. Okay, so in the portion we have been asked, that vote will be the effect on the both sides of the equation if us is hookers. Okay. That is to a very simple part. I mean, you have. Okay, he&#x27;s the potion Say&#x27;s that the sale even has been aboard. So let&#x27;s say it is a guy I see. Okay. Now, if there is a cash sale, okay, we have initial. I think we&#x27;re not supposed to write it here. Okay, let&#x27;s first, you know, just get the initial initial initial Ramones like they are in tow. You know, business offices selling. You do games to other customers. So we have initial amounts. No more confused. I&#x27;m just taking them all from this one. This one in this way. $1000 opposites. They&#x27;re recoverable. $500 off liabilities. 500 on herself, Equity. Okay, Now you have understood the basic concept of accounting. Question? No, let&#x27;s move to the solution. Okay, let&#x27;s suppose we have a cash sale of 500. Okay? No, if I will sell the video game, and against that, I will receive cash. What will happen? My sex. I will also increase because the asset also include the cash available with the business entity. Let&#x27;s suppose let&#x27;s suppose we have a company, Okay, but the s excited will also include the cash available in the business like we used to keep cash, you know, hard cash in the cash drawers. Or we can say our bollards are some some other type of stuff in which we can, you know, keep outta cash. So they will be $500 sale if if If we have you know, made a sale of $500 in cash than assert side of Greece. They will be more liability by there. So because we have because for for making this sale, we have incurred no type off liability. Okay? We have because I&#x27;m just supposing that I&#x27;m just making this is an example to make the solution here. Okay. So as we will sell the video game on cash on a cash basis So we will realize that cash around off 500 which will be included in the outside as the cash balance. Okay. No one the opposing side of the question. What will happen? See the motive for the businesses to own profit and what is actually profit? Nothing in the profit is simple. Everyone knows this. Okay, See, it&#x27;s minus expenses. So if vehicle in Greece ever since, they will be increasing profits off, if you will in Greece, other expenses, they leave degrees in Crawford&#x27;s. Okay, So, like flies, if there is increase in sales increasing states. So the secret about that will be your takeaway. After paying off all the liabilities be greater by that. So because you have made sales more than before. Okay, like you have made extra sense or you are making revenues, so your take of it will be greater. It is very, very office. Right. So you&#x27;re 500 will be. I do. Do you? In your big of it. Okay. So words the neck current. What is the net effect of the tradition? It&#x27;s this one becomes 15 under. This will be a sickness 500 and this will be $1000. Okay, so what is the net effect? What is the net effect on the both sides of the question? This this we have as the initial level. This we have after considering the transaction. So you can see there is a 15 and $500 increase. There is also $500 increase. So the correct solution we can conclude for the problem. 27 is e. Okay, so the correct choice. Okay. So you can derive the deny dissolution by forming the, you know, basic complication. Because without informing the question, you will not. You will not reach anybody. Anything. Okay. So tax are for the current solution. Thank you.

Problem

When a partnership dissolves, the last step in th…

Problem 15 Easy Difficulty

When a partnership dissolves, the first step in the dissolution process is to ________.
A. allocate the gain or loss on sale based on income sharing ratio
B. pay off liabilities
C. sell noncash assets
D. divide the remaining cash among the partners

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting