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In a partnership, any remaining funds or assets are distributed based on each member's capital account, assuming there's a positive capital balance.If a company is making its accounting entries after closing its physical location, no lagging expenses exist.Creditors usually expect full payment from the business, unless the forced closing of a company comes from a bankruptcy or other significant issue.A company with shareholders will pay investors last, if any funds remain.
Creditors are always senior to shareholders in receiving the corporation's assets upon winding up.It's not always to easy to have to close a business after pouring heart, sole and sweat equity into it.Regardless of whether you simply lost interest, are retiring or the venture just didn't pan out – many small businesses don't survive – there are some necessary accounting steps to take to wrap it up.After selling off your assets, it's time to pay any outstanding debts or liabilities related to the business.Essentially, liabilities represent any money owed to outside parties, such as vendors and lenders, any taxes or fees owed to the government .
Without doing this it leaves RE and Net Income on the Balance Sheet. In order for me to elaborate more accrurately, I need to see your Income Statement. Total COS 21340.24Gross Profit 16563.46 Supplies 40.88Bank Charges 58.00Insurance 303.75Utitlites 216.99Communication 3448.56Dues & Subscr. I am still a little confused, this is a livestock auction and it gets paid commission based on total sales.