CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 23-3LESSON 23-3
Dissolving a Partnership
2
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
ACCOUNT BALANCES BEFOREACCOUNT BALANCES BEFORE
R...
3
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
GAIN ON REALIZATIONGAIN ON REALIZATION page 686
...
4
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LOSS ON REALIZATIONLOSS ON REALIZATION page 687
...
5
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LIQUIDATING LIABILITIESLIQUIDATING LIABILITIES p...
6
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
ACCOUNT BALANCES AFTER LIQUIDATIONACCOUNT BALANC...
7
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
$360.00
240.00
$600.00
=
=
60%
40%
×
×
$600.00
$...
8
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DISTRIBUTING REMAINING CASH TODISTRIBUTING REMAI...
9
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
 liquidation of a part...
9
LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
 liquidation of a part...
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Lesson 23 3

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Lesson 23 3

  1. 1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 23-3LESSON 23-3 Dissolving a Partnership
  2. 2. 2 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning ACCOUNT BALANCES BEFOREACCOUNT BALANCES BEFORE REALIZATIONREALIZATION page 686
  3. 3. 3 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning GAIN ON REALIZATIONGAIN ON REALIZATION page 686 1. Calculate the gain. 2. Record the entry. 22 August 1, 20--. Received cash from sale of truck, $13,000.00: original cost, $20,000.00; total accumulated depreciation recorded to date, $8,000.00. Receipt No. 316. Gain on Realization =Book Value of Asset Sold –Value of Asset Received $1,000.00=–Cash $13,000.00 Cost $20,000.00 Accum. Depr. 8,000.00 Book Value $12,000.00 11
  4. 4. 4 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LOSS ON REALIZATIONLOSS ON REALIZATION page 687 1. Calculate the loss. 2. Record the entry. 22 August 1. Received cash from sale of supplies, $1,100.00; balance of supplies account, $1,500.00. Receipt No. 317. Loss on Realization =Book Value of Asset Sold –Value of Asset Received $(400.00)=–Cash $1,100.00 Supplies $1,500.00 11
  5. 5. 5 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LIQUIDATING LIABILITIESLIQUIDATING LIABILITIES page 688 August 4, 20--. Paid cash to all creditors for the amounts owed, $4,000.00. Check No. 422.
  6. 6. 6 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning ACCOUNT BALANCES AFTER LIQUIDATIONACCOUNT BALANCES AFTER LIQUIDATION OF NONCASH ASSETS AND PAYMENT OFOF NONCASH ASSETS AND PAYMENT OF LIABILITIESLIABILITIES page 688
  7. 7. 7 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning $360.00 240.00 $600.00 = = 60% 40% × × $600.00 $600.00 Walker Jeter Total Share of the Balance of Loss and Gain on Realization =Fixed Percentage ×Balance of Loss and Gain on Realization DISTRIBUTING LOSS OR GAIN ONDISTRIBUTING LOSS OR GAIN ON REALIZATION TO PARTNERSREALIZATION TO PARTNERS page 689 August 6, 20--. Recorded distribution of gain on realization: to Adam Walker, $360.00; to Shirley Jeter, $240.00. Memorandum No. 412. 1. Calculate each partner’s share of gain or loss. 2. Record entry to distribute gain or loss. 22 11
  8. 8. 8 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning DISTRIBUTING REMAINING CASH TODISTRIBUTING REMAINING CASH TO PARTNERSPARTNERS page 689 August 6. Recorded final distribution of remaining cash to partners: to Adam Walker, $18,360.00; to Shirley Jeter, $12,740.00. Check Nos. 423 and 424.
  9. 9. 9 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning TERMS REVIEWTERMS REVIEW  liquidation of a partnership  realization  limited liability partnership (LLP) page 690
  10. 10. 9 LESSON 23-3CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning TERMS REVIEWTERMS REVIEW  liquidation of a partnership  realization  limited liability partnership (LLP) page 690

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