2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold inlump sum for half of their book values to Venture Company less liquidation expenses ofP15,000. All partners are solvent.Direction:a) Prepare a statement of liquidation andb) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c)payment of liabilities, d) deficient partner makes additional investment, e) distribution ofremaining cash to the appropriate partners.3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold forP760,000 less P8,000 liquidation expenses. Assume all partners are insolvent.a) Prepare a statement of liquidation.b) Journalize a) sale of the other assets and distribution of loss including the liquidationexpenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s)and d) distribution of remaining cash to appropriate partner(s). 1. Mary, Helga, and Luz are partners who share profits and losses in the ratio of 4 2 2,respectively. The partners decide to liquidate and gave you the following balancesEXERCISESCashAccounts ReceivablesInventoriesP400,000200,000800,000700,000(100,000)Accounts PayableNotes PayableMary, CapitalHelga, CapitalLuz, CapitalP300,000400,000700,000400,000EquipmentAccumulated Depreciation200,000a Accounts Receivable were sold for P175,000 b) Inventories were sold for P820,000a Equipment were sold for P550,000 and d) Liquidation expenses of P12,000 were paid.Direction:a) Use the following table in support of the liquidation process. The cash balance after thepayment of liabilities should reconcile with the capital balances.Capital BalancesCashMaryHelgaLuzBalances before liquidationSale of receivables at a lossSale of inventories at a gainSale of equipment at a lossLiquidation expenses paidLiabilities paidDistribution to partners400,000700,000 400,000200,000

The partnership comes into existence when two or more partners enter into a business to share…

2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c) payment of liabilities, d) deficient partner makes additional investment, e) distribution of remaining cash to the appropriate partners. 3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation. b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s).

2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c) payment of liabilities, d) deficient partner makes additional investment, e) distribution of remaining cash to the appropriate partners. 3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation. b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s).

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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10. A, B and C agreed to liquidate their partnership. Information before the start of the liquidation process is as follows: Cash.. 25,200 297,600 Non-cash assets.. Notes payable to C.. 38,400 Other liabilities.. 184,800 72,000 A, capital (50%).. B, capital deficit (30%).. C, capital (20%).. (12,000) 39,600 Non-cash assets with carrying amount of P240,000 were sold for P216,000. Liquidation expenses of P16,800 were incurred. All the partners are insolvent. How much did C receive in the cash distribution to the partners? a. 46, 457 b. 74,571 с. 39,600 d. 0
2. The sale of the non-cash assets resulted in a total loss ofA. P70,000b. P60,000c.P65,000 d. P80.000e. answer not given
28. Show solution in good accounting form
The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below depicts their financial position before liquidation: Cash Loans to Tank Other non-cash assets P 30,000 70,000 600,000 The other non-cash assets were sold at P400,000. 1. The excess cash distributed to Kylie is P40,000 A. True B. False Accounts payables P Kylie, loan Kylie, capital (40%) Bambo, capital (20%) Tank, capital (40%) 2. The excess cash distributed to Tank is P110,000 A. True B. False 3. The ending balance of non-cash assets after liquidation is P200,000 A. True B. False 280,000 30,000 90,000 150,000 150,000
Show the solution in good accounting form
Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
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Problem 1 D, E, and F are partners with a profit and loss ratio of 5:4:1, respectively. The partnership is to be liquidated. Prior to the liquidation, the statement of financial position shows the following balances P 80,000 720,000 P 80,000 320,000 240,000 160,000 Cash Liabilities Other Assets D, Capital E, Capital F, Capital After realization, E received P120,000 as settlement of his interest. 1. How much was the loss on the sale of assets? 2. How much did F receive in final settlement of his interest? 3. What amount of total cash was distributed to the partners?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 41,000 229,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $46,500 21,000 77,500 67,500 57,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $20,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $79,000 are sold for $62,500. How is the available cash to be divided?