14:451.4045%KBlaAs of December 31, 2022, ToMoNoPartnership showed capital balancesof: To P40,000; Mo P25,000; NoP5,000. The partner's profit and lossratio was 3:2:1 respectively. Thepartners decided to liquidate thepartnership and sold all non cashasset for 37,000. After settlement ofall the liabilities amounting to12,000, they still have cash ofP28,000 left for distribution. Howmuch was the book value ofNoncash asset?37,000*82,00080,00079,000As of December 31, 2022, ToMoNoPartnership showed capital balancesof: To P40,000; Mo P25,000; NoP5,000. The partner's profit and lossratio was 3:2:1 respectively. TheIIIC)* כ

Approach to solving the question:Step 1:We sum up all the capital balances of the partners. Note:…

Answered: 14:45 1.40 45% KBla As of December 31,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 9MCQ

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Capital Mfundo -R125,600 Current account - Mfundo R26,400 On 1 June 2023, the following transactions took place concerning the liquidation: 1. A final settlement of R201,600 was received from debtors, with the remaining balance considered a settlement discount. 2. Mfundo agreed to acquire installation equipment with a carrying amount of R52,000 for a cash value of R60,700, which was not paid immediately. 3. The leftover installation equipment was disposed of for a cash sum of R95,000. 4. The company received a settlement discount of R9,000 upon paying off all creditors' accounts. 5. All non-current loans from partners were settled in full. 6. The expenses incurred during the liquidation process totalled R62,300. Question 15 Which one of the following alternatives represents the correct amount that must be allocated to Jackie on as liquidation profit/loss of Efficient Solar Guys (SA) on 1 June 2023? a. (R 50) b. (R 150) c. (R 137,925) d. (R 15,625) e. (R 46,875) f. R 46,575 Question 16…
d. 6. Partners Manalo and Capuno receive an interest allowance of P100,000 and P150,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If the company sustained a loss of P110,000 during the year, what is the effect on Manalo's capital? a. P82,500 decrease b. P120,000 decrease C. P170,000 decrease d. P105,000 decrease
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On March 1, 2018, X and Y formed a partnership. The partners contributed the following:X YCash P500,000 P400,000Accounts Receivable 300,000 200,000Allowance for doubtful accounts 50,000 20,000Inventory 150,000 100,000Equipment 500,000 200,000Accumulated depreciation 100,000 25,000Accounts Payable 50,000 400,000Note Payable 200,000The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of Xand Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value ofP190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yetbeen accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.If Y's Capital is to be used as basis, how…
On March 1, 2018, X and Y formed a partnership. The partners contributed the following:X YCash P500,000 P400,000Accounts Receivable 300,000 200,000Allowance for doubtful accounts 50,000 20,000Inventory 150,000 100,000Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000Accounts Payable 50,000 400,000Note Payable 200,000 The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of Xand Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value ofP190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yetbeen accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.If Y's Capital is to be used as basis, how…
1) The total assets of Best Service is P500,000. Twenty percent (20%) represents the claim of the owner. Its liability, therefore is: a. P100,000 b. P400,000 c. P500,000 d. None 2) The owner’s capital is P50,000. The creditors have 60% claim on the total assets. The correct amount of assets would be: a. P 83,333 b. P 80,000 c. P 30,000 d. P125,000
- What amount should be reported as loss from investment in 2024? A. P320,000 B. P800,000 C. P200,000 D. P120,000
Partners Ong, Rodriguez, Pamittan and Reyes who share profits andlosses at 30%, 30%, 20% and 20%, respectively, decided to liquidate. Allpartnership assets are to be converted into cash. Before liquidation, thecondensed statement of financial position follows:Cash P100, 000 Liabilities P750, 000Other Assets 1, 800, 000 Rodriguez, Loan 60, 000Reyes, Loan 50, 000Ong, Capital 420, 000Rodriguez, Capital 315, 000Pamittan, Capital 205, 000Reyes, Capital 100, 000Total P1, 900,000P1, 900,000The non-cash assets realized P800, 000, resulting to a loss of P1, 000,000. All the partners are solvent, and can contribute any additional cash tocover any deficiency. In the process of liquidation, deficiencies will occur andwill require additional investment as follows:a. Pamittan at P7, 500b. Reyes at P50, 000c. Reyes and Pamittan for P50, 000 and P7, 500, respectivelyd. None
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1. Done Partnership is undergoing liquidation. Information on Done is as follows: 20,000 Accounts payable 60,000 Payable to B 10,000 A; Capital (60%) 120,000 B, Capital (40%) 290,000 Cash 30,000 Accounts receivable Receivable from A 20,000 250,000 Inventory Equipment, net 200,000 Total 500,000 Total Liab. & Equity 500,000
ABC had capital balances of P40,000, P25,000 and P5,000 respectively with profit sharing ratio of 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for distribution. What was the loss on the realization o the non-cash assets?
A. After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash - P141,000; Accounts Payable - P 96,000; Sun, Loan - P 45,000; Sun, Capital -(P21,000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable? B. Using data above, how much is the final settlement to Star? *

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