Certainly! Let's break down the solution into the required parts step-by-step:
### A. Recording Transactions and Determining Partners' Capital Balance
First, we will record the transactions based on the given dates and values. Then, we'll determine the net cash available after liquidation expenses to be distributed to the partners according to their profit and loss sharing ratio.
#### Transactions Recording:
1. June 1, 2001: The inventory is sold at auction for Br 15,000.
2. July 15, 2001: Accounts receivable collected amount to Br 9,000; the remainder is written off.
3. August 20, 2001: Fixed assets are sold for Br 29,000.
4. August 25, 2001: All partnership liabilities are paid off (assuming no remaining balance here for simplicity).
5. September 10, 2001: Liquidation expenses of Br 3,000 are paid.
6. October 15, 2001: Remaining cash is distributed to the partners based on the final capital account balances.
#### Calculations:
Total Receipts:
- From Inventory: Br 15,000
- From Accounts Receivable: Br 9,000
- From Fixed Assets: Br 29,000
Total Received Funds:
[tex]\[ \text{Total Received Funds} = 15,000 + 9,000 + 29,000 = Br \ 53,000 \][/tex]
Expenses:
- Liquidation Expenses: Br 3,000
Net Receipts After Liabilities and Expenses:
[tex]\[ \text{Net Cash After Liabilities} = \text{Total Received Funds} - \text{Expenses} \][/tex]
[tex]\[ \text{Net Cash After Liabilities} = 53,000 - 3,000 = Br \ 50,000 \][/tex]
Partners' Sharing Ratios:
- MERGA: 60% (or 6/10)
- HAILU: 40% (or 4/10)
MERGA's Share:
[tex]\[ \text{MERGA's Share} = 50,000 \times \frac{6}{10} = Br 30,000 \][/tex]
HAILU's Share:
[tex]\[ \text{HAILU's Share} = 50,000 \times \frac{4}{10} = Br 20,000 \][/tex]
### B. Statement of Liquidation:
#### Statement of Liquidation:
1. Total Amount Realized from Liquidation of Non-Cash Assets:
- Inventory: Br 15,000
- Accounts Receivable: Br 9,000
- Fixed Assets: Br 29,000
[tex]\[ \text{Total Realized from Liquidation} = 15,000 + 9,000 + 29,000 = Br \ 53,000 \][/tex]
2. Less: Liquidation Expenses:
[tex]\[ \text{Liquidation Expenses} = Br 3,000 \][/tex]
3. Net Cash Available for Distribution to Partners:
[tex]\[ \text{Net Cash Available} = 53,000 - 3,000 = Br \ 50,000 \][/tex]
4. Distribution of Net Cash to Partners according to Profit and Loss Ratios:
- MERGA (60% share): Br 30,000
- HAILU (40% share): Br 20,000
#### Summary Statement:
```
----------------------------------------------------------
Statement of Liquidation for MERGA & HAILU Partnership
----------------------------------------------------------
A. Total Realized from Liquidation of Assets Br 53,000
- Inventory: Br 15,000
- Accounts Receivable Collected: Br 9,000
- Fixed Assets: Br 29,000
B. Less: Liquidation Expenses Br 3,000
C. Net Cash Available for Distribution Br 50,000
D. Distribution of Remaining Cash:
- MERGA's Share (60%) Br 30,000
- HAILU's Share (40%) Br 20,000
----------------------------------------------------------
```
In conclusion, after accounting for all sales and expenses, the final capital balances for the partners are:
- MERGA: Br 30,000
- HAILU: Br 20,000
