Company; Anusha Khand Shering Y.

Subba

A partnership firm established on Nov 2005. Contributed $16,000 each as capital. $21,000 borrowed from local bank. Mrs. Antoine was responsible for checking Account It was not successful Two of the partners disappeared Partnership dissolved was as of march 30.

BALANCE SHEET OF LONE PINE CAF AS ON 2nd NOVEMBER 2005

Assets
Amount $

Liabilities + O. Equity

Amount $

Office equipment
Supplies

53,200
2,800

Initial Capital (3x16000)

Bank Loan

48,000
21,000

License
Cash Register

1,428
1,400

Cash at Bank
Total

10,172
69,000 Total 69,000

BALANCE SHEET OF LONE PINE CAF AS ON 30th MARCH 2006

=

Assets Equipment Cash Register License Supplies Cash at Bank Cash

Amount $

Liabilities + O. Equity Capital A/c Payable Bank Loan

Amount $ 36,871 1,583 18,900

50,817 1,338 1,428 2,430 1,030 311

Total

57,354

Total

57,354

Depreciation: $2,445 for 5 months Depreciation Percentage : 10.75 % p.a. Depreciation of Equipment for 5 months : $ 2,383

Depreciation of Cash Register: $62

Regardless of the marital complication between the partners, each partner is liable to receive their share of the equity due to Separate Business-Entity Concept Scenario 1
Partners Equity Loan Amount Total Share

Mrs. Antoine Mr. Antoine Mrs. Landers

12,290.33 12,290.33 12,290.33

-6300 -6300 -6300

5,990.33 5,990.33 5,990.33

Scenario 2

Working Note:Total Theft Amount:- $ 1,338 + $ 311= $ 1,649 Hence, Theft Amount per head = $ 1,649/2= $824.50

Partners were well known and closed Know how about the business. Restaurant was in a nearby recreational area. Their accommodation was above the restaurant Self employed. Will power of Mrs. Antoine to continue the business

Lack of commitments
No extra workforce

Poor quality of service

Partnership dissolved- sole proprietorship

Location of cafe

Vacant room could be rented

Failure of partnership business

Degradation of goodwill and image. Competition Improper supervision Lease and licensing