1. 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 C. P19,000 D. P17,800   2. Cloe, Doe and Lida are partners with capital balances on December 31, 2021 of P300,000, P300,000 and P200,000 respectively.  Profits are shared equally.  Lida wishes to withdraw and it is agreed that she is to take certain furniture and fixtures with second hand value of  P50,000 which are carried on the books at P65,000.  Brand new, the furniture and fixtures may cost, P80,000.  How much is the value of the note that Lida will get from the partnership’s liquidation? A. P145,000 B. P120,000 C. P150,000 D. P195,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
1. 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
C. P19,000
D. P17,800
 
2. Cloe, Doe and Lida are partners with capital balances on December 31, 2021 of P300,000, P300,000 and P200,000 respectively.  Profits are shared equally.  Lida wishes to withdraw and it is agreed that she is to take certain furniture and fixtures with second hand value of  P50,000 which are carried on the books at P65,000.  Brand new, the furniture and fixtures may cost, P80,000.  How much is the value of the note that Lida will get from the partnership’s liquidation?

A. P145,000
B. P120,000
C. P150,000
D. P195,000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education