Bing and Bingo decided to dissolve and liquidate the partnership on June 16, 2020. On that date, the following account balances are as follows: ASSETS LIABILITIES AND EQUITY Cash P15,000 Accounts Payable P170.000 Other Assets 320,000 Loan. Bing 30.000 Advances to Bingo 35.000 Bing, Capital 60.000 Bingn, Capital 110000 Total Assets P370,000 Total Liabilities and Equity P370,000 On July 1, non-cash assets with a book value of P190,000 were sold at P165,000, and paid liquidation expenses, P6,000. On July 23, the remaining non-cash assets were sold at P80,000, and all available cash was distributed to partners. Profit and loss ratio is 3:1, respectively. How much is the total cash received by Bingo upon liquidation of the partnership?

Bing and Bingo decided to dissolve and liquidate the partnership on June 16, 2020. On that date, the following account balances are as follows: ASSETS LIABILITIES AND EQUITY Cash P15,000 Accounts Payable P170.000 Other Assets 320,000 Loan. Bing 30.000 Advances to Bingo 35.000 Bing, Capital 60.000 Bingn, Capital 110000 Total Assets P370,000 Total Liabilities and Equity P370,000 On July 1, non-cash assets with a book value of P190,000 were sold at P165,000, and paid liquidation expenses, P6,000. On July 23, the remaining non-cash assets were sold at P80,000, and all available cash was distributed to partners. Profit and loss ratio is 3:1, respectively. How much is the total cash received by Bingo upon liquidation of the partnership?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 57P

See similar textbooks

Similar questions

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
A, B and C decided to dissolve their partnership on May 31, 2020. On this date their capital balances and profit sharing percent were as follows: A P150,000 40% B 180,000 30% C 60,000 30% The net income form January 1 to May 31, 2020 was P132,000. Also on May 31, 2020, the partnership cash and liabilities, respectively were P120,000 and P270,000. For A to receive P165,600 in full settlement of his interest in then partnership, how much must be realized from the sale of the partnership's non cash assets?
AA, BB and CC decided to liquidate the partnership on July 31, 2022. Their capital balances and profit ratio on this date follow: Capital Balances Profit Ratio AA P56,000 45% BB 72,000 25% CC 32,000 30% The net income from January 1to July 31, 2022 is P12,000. Also, on this date, cash and liabilities are P42,000 and P58,000 respectively. CC received P41,600 in full settlement of his interest in the firm. How much did AA receive?
The following are the account balances as of June 30, 2022 of JPP Partnership just before liquidation:Cash - 100000Inventory - 600000Furniture - 200000Equipment - 400000Accounts Payable - 200000Loans from Pedro - 200000Juan, capital - 20% - 300000Pedro, capital -35% - 310000Pablo, capital - 45% - 280000The following events occurred thereafter:Jul 1 - Equipment was sold for P380,000Jul 15 - Furniture was sold for P 210,000Jul 30 - Inventory with book value of P500,000 was sold for P200,000Aug 15 - Remaining inventory was sold for P 80,000a. Prepare a liquidation report.b. Prepare a cash distribution report/computation for safe payment for each time the partnership will be paying off the partners.c. Prepare a cash priority program and show how it can be used to settle the partner’s equity balances.d. Indicate on the space provided the total cash each partner would receive.
On Dec. 31, 2019, The Hungria and Blanche Partnership had the following assets, liabilities, and partners’ equity: Assets Liabilities Hungria, Capital Blanche Capital P1,000,000= P250,000+ P400,000+ P350,000 When the partners agreed to liquidate the business, the assets were sold for P800,000 and the liabilities were paid. Hungria and Blanche share profits and losses ratio of 3:1 respectively. What is the final cash distribution to each partner after liquidation?
On June 30, 2020, the statement of financial position for the partnership of A, B, and C together with their respective profits and loss ratios, were as follows: Assets, at cost - P200,000 A, Loan - 10,000 A, Capital (20%) - 35,000 B, Capital (30%) - 75,000 C, Capital (50%) - 80,000 A decided to retire from the partnership. by mutual agreement, the assets to be adjusted to their fair value of P220,000 at June 30, 2020. It was agreed that the partnership would pay A P60,000 cash for A's partnership interest, including A 's loan which is to be repaid in full. No goodwill/ asset revaluation is to be recorded. After A's retirement, what is the balance of B's capital account?
On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash -P100,000 Loan to B -P25,000 Other assets -P1,075,000 Liabilities to outsiders -P603,000 Due to C -P32,000 A, Capital -P216,000 B, Capital -P187,000 C, Capital -P162,000 A, B, and C share profits and losses in the ratio of 4:4:2, respectively. The partnership was able to sell all the other assets for P1,120,000 and paid liquidation expenses of P10,000. A How much cash should A receive?
On December 31, 2019, the balance sheet for the XYZ Partnership follows: The percentages shown are for the residual profit and loss sharing ratios. The partners dissolved the partnership on January 1, 2020 and began the liquidation process. During January the following events occurred: Receivables of P7,500 were collected. All inventory was sold for P10,000. All available cash was distributed on January 31, 2020, except for P5,000 that was set aside for contingent expenses. How much cash would Xander receive from the cash that is available for distribution on January 31?
The following balances as of the end of 2016 for the partnership of X, Y, and Z, together with their respective profit and loss percentages, were as follows: Look on the picture X decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of P432,000 as of December 31, 2016. X will be paid P122,400 for X’ partnership interest inclusive of X loan which is to be repaid in full. No goodwill is to be recorded. After X, retirement. What will be the balance of Y’ capital account? a. P78,000 b. P72,900 c. P92,400 d. P90,900 Assuming that the P122,400 payment to X excludes his loan, what will be the balance of Y’s capital account, after X’s retirement? a. P78,000 b. P92,400 c. P90,900 d. P86,400
On December 31, 2030, ABC Partnership’s Statement of Financial Position shows that A, B and C have capital balances of P800,000, P600,000 and P200,000 with profit or loss ratio of 1:4:5. On January 1, 2031, C retired from the partnership and received P160,000. At the time of C’s retirement, the assets and liabilities of the partnership are properly valued. What is the capital balance of B after the retirement of C?a. P568,000b. P616,000c. P632,000d. P640,000
A, B and C decided to dissolve the partnership on November 30, 2021. Their capital balances and profit ratio on this date follows: A, P50,000 (40%); B, P60,000 (30%); C, P20,000 (30%). The net income from January 1 to November 30, 2021 is P44,000. Also on this date, cash and liabilities are P40,000 and P90,000, respectively. For A to receive P55,200 in full settlement of his interest in the firm, how much must be realized from the sale of the firms non cash assets?
On January 1, 2021, the partnership of TM, JK and AB, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership accounts were as follows: Cash 375,000 TM, Capital 408,000 Other Assets 1,125,000 JK, Capital 474,000 Liabilities 282,000 AB, Capital 336,000 On January 15, 2021, the first cash sale of other assets with a carrying amount of P540,000 realized P444,000. Safe installment payments to the partners were made the same date. 1. If cash of P 165,000 is to be withheld for contingencies, how much cash should be distributed to AB? 2. Assuming the first cash sale of other assets with a carrying amount of 690,000 realized 495,000 and cash of 240,000 is to be withheld, how much cash should be distributed to JK?