2.Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively. Their balance sheet is below. Cash $200,000 Payables to Creditors$300,000 Receivable from Grouse50,000 Loan to Partridge, 10,000 Receivable from Flicker20,000 Grouse, Capital 240,000 Property & Equipment480,000 Flicker, Capital 250,000 Goodwill 100,000 Partridge, Capital 50,000 $850,000 $850,000 The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent.The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital.The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses. All partners are personally insolvent. Prepare a liqudation schedule showing any cash available to the partners.

Liquidation- Liquidation is the process of converting non-liquid assets to liquid assets...that is,…

Answered: 2. Grouse, Flicker, and Partridge are…

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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Orion, Leanna and Aric were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008. Balance Sheet as on 31 March, 2008 Assets Liabilities Capital Accounts: Orion Leanna Aric General Reserve Creditors Orion's Loan A/c Bills payable Amount $ Machinery 30,000 Stock 10,000 Debtors 10,000 Loss: R.D.D. 3,000 Investment 20,000 Profit and Loss A/c 4,000 Bank 7,000 84,000 27,500 1,500 2) Dissolution expenses were $ 1,500. 3) Goodwill of the firm realised $ 12,000 Pass the necessary Journal entries in the books of the firm. Amount $ 25,000 10,000 26,000 12,000 9,000 2,000 84,000 On the above date the partners decided to dissolve the firm: 1) Assets were realised: Machinery $ 22,500, Stock $9,000, Investment $ 10,500, Debtors $ 22,500.
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The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Hardwick, loan Total assets $ 93,000 815,000 44,000 Beginning balances Sold assets $952,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Total liabilities and capital The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $125,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.) HARDWICK, SAUNDERS, AND FERRIS Proposed Schedule of Liquidation Cash Other Assets $ 48,000 54,000 380,000 240,000 230,000 $952,000 Accounts Payable Hardwick, Loan and Capital Saunders, Capital Ferris, Loan & Capital
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2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000
3. Cash Other assets P 28,000 265,000 P 48,000 95,000 80,000 70,000 P 293,000 Liabilities Alex, capital Jay, capital John, capital Total Total P293.000 partnership and liquidate by selling other assets in installments. P70,000 was realized on the se cash sale of other assets with a book value of P150.000, After settlement with creditors, all cash available was distributed to the partners. How much cash was received by John? P10,500 20,000 21,250 32,500 a Partners Arce, Bello and Cruz share profits and losses in the ration of 3:2:1. At the end of a very nprofitable year, they decided to liquidate the firm. The partner's capital account balances at thi me are as follows: P 24, 000; P 27,000; P 17,500. umulate to P32,000, inçluding a loan of P10.000 from

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Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively.
Their balance sheet is below.

Cash		$200,000	Payables to Creditors	$300,000
Receivable from Grouse	50,000	Loan to Partridge,	10,000
Receivable from Flicker	20,000	Grouse, Capital	240,000
Property & Equipment	480,000	Flicker, Capital	250,000
Goodwill		100,000	Partridge, Capital		50,000
		$850,000				$850,000

The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent.
The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital.
The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses.
All partners are personally insolvent.

Prepare a liqudation schedule showing any cash available to the partners.