lone pine cafe

Company;Anusha KhandShering 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 CAFÉ AS ON 2nd NOVEMBER 2005

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

Assets Amount $ = Liabilities + O. Equity Amount $

Office equipment 53,200 Initial Capital (3x16000) 48,000

Supplies 2,800 Bank Loan 21,000

License 1,428

Cash Register 1,400

Cash at Bank 10,172

Total 69,000 Total 69,000

BALANCE SHEET OF LONE PINE CAFÉAS ON 30th MARCH 2006

BALANCE SHEET OF LONE PINE CAFÉAS ON 30th MARCH 2006

Assets Amount $ = Liabilities + O. Equity Amount $

Equipment 50,817 Capital 36,871

Cash Register 1,338 A/c Payable 1,583

License 1,428 Bank Loan 18,900

Supplies 2,430

Cash at Bank 1,030

Cash 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 12,290.33 -6300 5,990.33

Mr. Antoine 12,290.33 -6300 5,990.33Mrs. Landers 12,290.33 -6300 5,990.33

Scenario 2

Working Note:- Total Theft Amount:- $ 1,338 + $ 311= $ 1,649Hence, 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