Chapter 12, Problem 12.20EX

a.

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

Liquidating Partnership

The winding up of process of partnership is called liquidation of partnership. At the time of liquidation of partnership realization of account is prepared.

To indicate:  The term that is applied to the debit balance in F’s Capital account.

b.

To determine

 The amount of cash on hand.

c.

To determine

To record: The transaction that must take place for L and Z to receive cash in the liquidation process.