2. Partners O, R, P, and Q who share profits and losses at 30%, 30%, 20%, and 20%, respectively. decided to liquidate. All partnership assets are to be converted into cash. Before liquidation, the condensed balance sheet follows: Cash Other Assets P 100,000 1,800,000 Liabilities R, Loan Q, Loan O, Capital R, Capital P, Capital Q, Capital P 750,000 60,000 50,000 420,000 315,000 205,000 100,000 P 1,900,000 Total P 1,900,000 The 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 to cover any deficiency. In the process of liquidation. who among the partners will incur deficiencies will occur and will require additional investment? Show your supporting computation.

2. Partners O, R, P, and Q who share profits and losses at 30%, 30%, 20%, and 20%, respectively. decided to liquidate. All partnership assets are to be converted into cash. Before liquidation, the condensed balance sheet follows: Cash Other Assets P 100,000 1,800,000 Liabilities R, Loan Q, Loan O, Capital R, Capital P, Capital Q, Capital P 750,000 60,000 50,000 420,000 315,000 205,000 100,000 P 1,900,000 Total P 1,900,000 The 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 to cover any deficiency. In the process of liquidation. who among the partners will incur deficiencies will occur and will require additional investment? Show your supporting computation.

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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