Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $36,000 and $24,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $45,000. a.  What is the amount of a gain or loss on realization?   $ b.  How should the gain or loss be divided between Hewitt and Patel? Hewitt     Patel     c.  How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0".   Hewitt and Patel Distribution of Cash   Hewitt Patel Capital balances before realization $ $ Division of gain or loss on realization     Balances $ $ Cash distributed to partners     Final balances $ $

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.