1. Done Partnership is undergoing liquidation. Information onDone is as follows:20,000 Accounts payable60,000 Payable to B10,000 A; Capital (60%)120,000 B, Capital (40%)290,000Cash30,000Accounts receivableReceivable from A20,000250,000InventoryEquipment, net200,000Total500,000 Total Liab. & Equity500,000 Case 1: Lump-sum liquidationThe non-cash assets were realized as follows:a. Only 70% of the accounts receivable was collected; the balanceis uncollectible.b. P20,000 was received for the entire inventory.c. The equipment was sold for P310,000.d. P12,000 liquidation expenses were paid.Requirement: Compute for the cash distributions to the partners.

This question deals with the concept of liquidation of partnership firm. Liquidation may happen with…

1. Done is as follows: one Partnership is undergoing liquidation. Information on Cash Accounts receivable Receivable from A 20,000 Accounts payable 60,000 Payable to B 10,000 A; Capital (60%) 120,000 B, Capital (40%) 290,000 500,000 Total Liab. & Equity 30,000 20,000 250,000 Inventory Equipment, net Total 200,000 500,000

1. Done is as follows: one Partnership is undergoing liquidation. Information on Cash Accounts receivable Receivable from A 20,000 Accounts payable 60,000 Payable to B 10,000 A; Capital (60%) 120,000 B, Capital (40%) 290,000 500,000 Total Liab. & Equity 30,000 20,000 250,000 Inventory Equipment, net Total 200,000 500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. The balance sheet of the RJ, SJ and TJ partnership, just before liquidation, is as follows: Assets P120,000 Liabilities 50,000 10,000 RJ, loan RJ, capital SJ, capital TJ, capital Total 22,000 30,000 8,000 P120,000 RJ, SJ and TJ share profits 5:3:2 respectively. Certain assets are sold for P80,000. Creditors are paid in full, partners are paid P20,000, and cash withheld for future expenses P10,000. How much cash is to be distributed to the partners? RJ SJ TJ P13,000 P14,250 a. P7,000 b. P5,750 с. Р5,250 d. P7,550 PO PO P14,750 P12,450 PO PO е. None of the above
JCA Partnership is entering into liquidation and you are given the following account balances: Cash 1,100,000 775,000 6,750,000 Liabilities Loan from A Noncash asset 150,000 J, capital (20%) 1,275,000 C, capital (20%) 1,625,000 3.375,000 A, capital (60%) Total liab, and capital Total Asset 7.525.000 7.525.000 During June, noncash asset with a book value of P1,875,000 were sold for P1,600,000. JCA paid P175,000 for the liquidation expenses it incurred and it also paid its liabilities to outsider creditors. However, creditors whose account balances amount to P150,000 decided to condone JCA's liabilities. % of the cash received from the sale of noncash assets were distributed to the partners. What is A's interest after the first cash distribution?
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The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4…
SCA partnership has the following account balances before liquidation: Cash 70,000 Liabilities 225,000 NCA 1,475,000 Loan to C 30,000 Loan from A 10,000 Receivable from S 4,000 Expenses 446,000 S, Capital (4) 250,000 C, Capital (4) 380,000 A, Capital (2) 200,000 Revenues 960,000 During May, some noncash assets were sold that resulted to a loss of 9,225. Liquidation expenses of 35,000 were paid and additional expenses amounting to 18,000 were expected to be incurred through the following months of liquidating the partnership. Liabilities to outsiders amounting to 175,000 were paid. What is the book value of the noncash assets sold for C to received 111,110?
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Prior to liquidation, the capitals are reported with the following balances: Partners Capitals P/L Ratio Alaska P160,000 1/3 Bilasa 290,000 2/3 The total liabilities of the partnership amount to P150,000, and all assets available are noncash assets were realized at P540,000. The cash distribution to Alaska and Bilasa respectively would be A. P130,000 P260,000 B. P190,000 P350,000 C. P135,000 P270,000 D. P140,000 P250,000 As of December 31, 2022, the books of AME Partnership showed capital balances of A, P40,000; M, P25,000; E P50,000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in distribution of the P28,000 cash would be: A. P18,000 B. P0…