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Video instructions and help with filling out and completing letter of dissolution

Instructions and Help about dissolution letter form

In this video we are going to say piecemeal distribution in Facemandistribution there are two methods or the oneness proportionate capital method under one is maximum loss method we have already discussed the proportionate capital method in the separate video now we are going to see maximum loss method with a problem see the problem Led why and is it or partners sharing profit and loss in proportion of five is to 3 is to 2 their balance sheet on 31st December 2015 ISAS follows look at the balance sheet assets side plant and machinery land and buildings stock depth AZA and total as tool at 22,000 flag data side capitals Capital 75,000 wise capital 45,000that's capital 30,000 creditors 60,000 Sloan 12,000 total 2 left 22,000 on the above date they decided to dissolve the form and to repay the amounts due to partners as and when the assets were realized first realization is 45,000second realization is 1 lakh and third realization is 60,000 with this information they ask you to prepare the statement showing how the distribution should be made and a maximum loss method this is a format statement showing distribution of cash first you have to start with balance brought down so which have taken from the balance sheet a/while you write the format first you have to know about the order of payment because look at the balance sheet in the liability side we have done two partners capital X why is that and credit of60,000 and why Sloan 12000, so we need to repay all these things out of realization, so we have three realizations first one 45 thousand second one lakh and the third one is60,000, but before you distribute the amount you need to know the order of payment depth look at the order of payment the first payment to creditor sand other external liabilities okay a dafter making payment to creditors andotherSerna liabilities the second reference will be payment to partners loan notably if any look at the third one if any among remains after making the above payments that is a Capital and external liability and payment to partners loan okay after making the about two payments this is utilized in payment of capital to the partners in that we are going to apply maximum loss method according to order of payment the first payment Willie made to Capital and second preference goes to partners low and third preference goes to partners capital upon, so first you have to start with balance broader which I have taken from that balance sheet credit of 60,000Weiss loan twelve thousand sixty thousand twelve thousand X capital is seventy-five thousand wise capital is forty-five thousand and set capital is thirty thousand X 75 y 45 and Z thirty thousand look at the first you realization how much forty-five thousand first realization how much amount forty-five thousand so total realization forty-five thousand first we need to pay this amount to third party lab that is Thais a credit AZA, but we need 60 thousandth make payment to greater, but we have only 45 thousand the...