The balance sheet of Ana, Eva and Nora partnership, just before liquidation on June 4, is as follows: Cash P6,000 Liabilities P70,000 Non-cash assets 94,000 Eva, loan 4,000 Ana,capital (40%) Eva capital(40%) Nora, capital (20%) 27,000 39,000 10,000 P100,000 Total P100,000 Total On June 4,2012, other assets were sold for P30,700 and P20,500 had to be paid to liquidate the liabilities because of unrecorded claims amounting to P500. Ana and Eva are personally solvent, but Nora's personal liabilities exceed personal assets by P6,000. How much cash should be distributed to partners? Ana Eva Nora a. P1,480 P17,480 PO b. 100 16,100 2,760 C. 100 16,100 d. 1,480 16,100 e. None of the above

The balance sheet of Ana, Eva and Nora partnership, just before liquidation on June 4, is as follows: Cash P6,000 Liabilities P70,000 Non-cash assets 94,000 Eva, loan 4,000 Ana,capital (40%) Eva capital(40%) Nora, capital (20%) 27,000 39,000 10,000 P100,000 Total P100,000 Total On June 4,2012, other assets were sold for P30,700 and P20,500 had to be paid to liquidate the liabilities because of unrecorded claims amounting to P500. Ana and Eva are personally solvent, but Nora's personal liabilities exceed personal assets by P6,000. How much cash should be distributed to partners? Ana Eva Nora a. P1,480 P17,480 PO b. 100 16,100 2,760 C. 100 16,100 d. 1,480 16,100 e. None of the above

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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The statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2016 before liquidation is as follows: Assets Liabilities & Capital Cash P 50,000 Liabilities P 200,000 Other Assets 550,000 Paraiso, capital Ligeralde, capital Total Liabilities & Capital 225,000 175,000 Total Assets P 600,000 P 600,000 Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000, creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225,000. REQUIRED: 1. PREPARE A STATEMENT OF LIQUIDATION USING SCHEDULE OF SAFE PAYMENTS. 2. PREPARE A STATEMENT OF LIQUIDATION USING CASH PRIORITY PROGRAM.
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.
The statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2016 before liquidation is as follows: Assets Liabilities & Capital P 50,000 550,000 Cash Liabilities 'P 200,000 Other Assets Paraiso, capital Ligeralde, capital Total Liabilities & Capital 225,000 P 600,000 175,000 P 600,000 Total Assets Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000, creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225,000. REQUIRED: PREPARE A STATEMENT OF LIQUIDATION USING CASH PRIORITY PROGRAM.
After years of operations, the partnership of De Vera, Dela Cruz, De Jesus is to be liquidated. After making the closing entries on February 28, 2022, the following accounts were left: Account Debit Credit Cash Non-cash Assets Liabilities De Vera, Capital Dela Cruz, Capital De Jesus, Capital 50,000 2,350,000 400,000 900,000 500,000 600,000 All the non-cash assets were sold for P2,650,000. Profits and losses are shared equally. Required: a. Prepare the statement of partnership liquidation b. Prepare the journal entries for the following: Sale of all non-cash assets and distribution of loss on realization to the partners • Payment of liabilities • Distribution of cash to the partners
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 CASE 1: The partnership was able to sell all the other assets for P1,120,000 and paid liquidation expenses of P10,000. 1. How much cash should A, B, and C receive?
The following are the liabilities and equity section of BEE Partnership at the time of liquidation: Liabilities P300,000, Loan- Ella, P20,000, Bea, Capital (30% P/L ratio), P60,000, Ella, Capital (40% P/L ratio), P40,000, Emma, Capital (30% P/L ratio), P80,000. Cash at the time of liquidation amounting P90,000. The following takes place at that time: The partners agreed that Bea will receive inventory and Emma will receive equipment before cash distribution. At that time, inventory has a book value of P4,000 but only realizable to P3,000, and equipment having a book value of P33,000 but revalued to P28,000. All other noncash assets were realized amounting P210,000 cash, but P10,000 of the cash proceeds were expensed for the liquidation process. Only Ella is solvent at that time. Required: Prepare the Statement of Liquidation - Lump Sum Liquidation.
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A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000Other assets: 238,000Liabilities: 80,000A, Capital: 88,000B, Capital: 62,000C, Capital: 56,000 4. On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.
the statement of financial position for paraiso and ligeralde partnership on june 1, 2019 before the liquidation is as follows: cash 50,000, other asset 550,000, liabilities 200,000, paraiso capital 225,000, ligeralde capital 175,000. paraiso and ligeralde share profits and losses 60:40 respectively. in june asset with a book value of 220 were sold for 180,000 creditors were paid in full and 20,000 was paid to partners. in july asset with a boook value of 100,000 were sold for 120,000, liquidation expense of 5,000 were paid and cash of 125,000 was paid to to partners. in august, the remaining assets were sold for 225,000. required: 1. how much cash should ligaralde received in june? 2. how much cash should paraiso received in july? how much cash should ligaralde and paraiso received in august?
The balance sheet of the Maude, Ned, and Oscar partnership on November 1, 2014 (before commencement of partnership liquidation) was as follows: Cash $ 12,000 Georgia, capital (40%) $ 36,000 Holly, capital (30%) 6,000 Festus, capital (50%) 31,000Total assets $ 90,000 Total liab./equity $ 90,000 Cash $ 70,000 Accounts payable $ 42,000Inventory 60,000 Notes payable 68,000Loan to Maude 10,000 Maude, capital (20%) 30,000Loan to Oscar 18,000 Ned, capital (20%) 32,000Plant assets-net…
Item Nos. 13 and 14 are based on the following information: The following are the assets and liabilities of Tee, Pak, and Long partnership on April 30, 200B prior to liquidation: Cash P 25,000 Liabilities. P 52,000 Other Assets 180,000 40,000 Tee Capital (40%) Pak Capital (40%) 65,000 Long Capital (20%) 48,000 P 205,000 P 205,000 The first sale of noncash assets having a carrying amount of P 90,000 realized P 50,000. 13. The amount of cash each partner should receive in the first installment is: a. Tee, P 0; Pak, P 0; Long, P 23,000. b. Tee, P O; Pak, P 5,000; Long, P 18,000. c. Tee, P 12,000; Pak, P 13,000; Long, P 18,000. C. d. Tee, P 27,000; Pak, P 5,000; Long, P 18,000. 14. If P 3,000 cash is withheld for future liquidation expenses, how much cash should Long receive? a. P 21,000. c. P 17,000. b. P 20,000. d. P 3,000.