lone pine cafe
TRANSCRIPT
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