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Realisation expenses paid by girm 1000 however the expenses were to be borne by partner x for which he was to be given commision odf 5percent on net cash realised on dissolution. cash from assets 200000 cadh paid for liavbilities 40000
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Realisation expenses paid by girm 1000 however the expenses were to be...
Introduction:
In the context of partnership firms, dissolution refers to the process of bringing an end to the existing partnership agreement. It involves settling the accounts, distributing the assets, and paying off the liabilities of the firm. The dissolution of a partnership can occur due to various reasons such as death, retirement, insolvency, or mutual agreement among the partners.
Dissolution Expenses:
During the process of dissolution, various expenses may be incurred. These expenses are essential for winding up the partnership affairs and may include legal fees, audit fees, advertising costs, and other administrative expenses. In the given scenario, the realization expenses amounting to CAD 1000 were paid by the firm.
Expenses to be Borne by Partner X:
According to the partnership agreement, partner X was responsible for bearing the realization expenses. However, the firm paid these expenses on behalf of partner X. As per the agreement, partner X was entitled to receive a commission of 5% on the net cash realized on dissolution.
Calculation of Net Cash Realized:
To calculate the net cash realized on dissolution, we need to consider the cash from assets and deduct the cash paid for liabilities. In this case, the cash from assets is CAD 200,000, and the cash paid for liabilities is CAD 40,000.
Net Cash Realized = Cash from Assets - Cash Paid for Liabilities
= CAD 200,000 - CAD 40,000
= CAD 160,000
Commission for Partner X:
As per the partnership agreement, partner X is entitled to a commission of 5% on the net cash realized on dissolution. Therefore, the commission payable to partner X can be calculated as follows:
Commission = Net Cash Realized * Commission Rate
= CAD 160,000 * 5%
= CAD 8,000
Conclusion:
In conclusion, the dissolution expenses of CAD 1000 were paid by the firm, although partner X was responsible for bearing these expenses. Partner X, as per the partnership agreement, is entitled to a commission of 5% on the net cash realized on dissolution. The net cash realized on dissolution, after deducting liabilities from the assets, is CAD 160,000. Therefore, partner X is eligible to receive a commission of CAD 8,000.
In the context of partnership firms, dissolution refers to the process of bringing an end to the existing partnership agreement. It involves settling the accounts, distributing the assets, and paying off the liabilities of the firm. The dissolution of a partnership can occur due to various reasons such as death, retirement, insolvency, or mutual agreement among the partners.
Dissolution Expenses:
During the process of dissolution, various expenses may be incurred. These expenses are essential for winding up the partnership affairs and may include legal fees, audit fees, advertising costs, and other administrative expenses. In the given scenario, the realization expenses amounting to CAD 1000 were paid by the firm.
Expenses to be Borne by Partner X:
According to the partnership agreement, partner X was responsible for bearing the realization expenses. However, the firm paid these expenses on behalf of partner X. As per the agreement, partner X was entitled to receive a commission of 5% on the net cash realized on dissolution.
Calculation of Net Cash Realized:
To calculate the net cash realized on dissolution, we need to consider the cash from assets and deduct the cash paid for liabilities. In this case, the cash from assets is CAD 200,000, and the cash paid for liabilities is CAD 40,000.
Net Cash Realized = Cash from Assets - Cash Paid for Liabilities
= CAD 200,000 - CAD 40,000
= CAD 160,000
Commission for Partner X:
As per the partnership agreement, partner X is entitled to a commission of 5% on the net cash realized on dissolution. Therefore, the commission payable to partner X can be calculated as follows:
Commission = Net Cash Realized * Commission Rate
= CAD 160,000 * 5%
= CAD 8,000
Conclusion:
In conclusion, the dissolution expenses of CAD 1000 were paid by the firm, although partner X was responsible for bearing these expenses. Partner X, as per the partnership agreement, is entitled to a commission of 5% on the net cash realized on dissolution. The net cash realized on dissolution, after deducting liabilities from the assets, is CAD 160,000. Therefore, partner X is eligible to receive a commission of CAD 8,000.
Community Answer
Realisation expenses paid by girm 1000 however the expenses were to be...
Actual commission revived 8000
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Realisation expenses paid by girm 1000 however the expenses were to be borne by partner x for which he was to be given commision odf 5percent on net cash realised on dissolution. cash from assets 200000 cadh paid for liavbilities 40000 Related: Introduction : Dissolution of a Partnership Firm - Class 12, Accountancy?
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Realisation expenses paid by girm 1000 however the expenses were to be borne by partner x for which he was to be given commision odf 5percent on net cash realised on dissolution. cash from assets 200000 cadh paid for liavbilities 40000 Related: Introduction : Dissolution of a Partnership Firm - Class 12, Accountancy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Realisation expenses paid by girm 1000 however the expenses were to be borne by partner x for which he was to be given commision odf 5percent on net cash realised on dissolution. cash from assets 200000 cadh paid for liavbilities 40000 Related: Introduction : Dissolution of a Partnership Firm - Class 12, Accountancy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Realisation expenses paid by girm 1000 however the expenses were to be borne by partner x for which he was to be given commision odf 5percent on net cash realised on dissolution. cash from assets 200000 cadh paid for liavbilities 40000 Related: Introduction : Dissolution of a Partnership Firm - Class 12, Accountancy?.
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