A, B and C partnership is being liquidated. The current balance sheet is shown here:Cash25,000Other assets120,000Accounts payableA, Capital (30%)B, Capital (406)C, Capital (30%)40,00031,00065,0009,000Required: Prepare a schedule of partnership liquidation for each of the following independent cases:a. Non-cash assets are sold for P60,000, and any partner with a deficit is unable to eliminate any ofthe deficit.b. Non-cash assets are sold for P60,000, and any partners with a deficit is able to invest cash equalto the amount of the deficit.c. Non-cash assets are sold for P50,000, and any partner with a deficit is able to invest up toP8,000 cash in the partnership.

A partnership is a type of business in which the proprietors are personally liable for the debts of…

Answered: A B and C partnership is being…

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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A partnership has the following balance sheet prior to liquidation (partners' profit and loss ratios are in parentheses): $ 33,000 100,000 Cash Other assets Total $ 133,000 Beginning balances Sale of assets Pay liabilites Pay liquidation expenses Subtotal Distribution to partners Ending balances Liabilities Playa, capital (40%) Bahia, capital (30%) Arco, capital (30%) Total During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. Required: Prepare a statement of partnership liquidation to determine the amount of cash each partner receives as a result of this liquidation. Note: Amounts to be deducted should be entered with a minus sign. PLAYA, BAHIA, AND ARCO PARTNERSHIP Statement of Partnership Liquidation Other Assets Liabilities $ 50,000 24,000 29,000 30,000 $ 133,000 Cash Playa, Capital Bahia, Capital Arco, Capital (40%) (30%) (30%)
Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166
В. Pisces, Leo and Gemini share profits in the ration of 5:3:2, respectively. Capital and loan balances just prior to partnership liquidation are: САРITAL LOANS Pisces P 120,000 Pisces P 45,000 Leo 90,000 Leo 30,000 Gemini 40,000 Gemini 13,000 Non-cash assets are sold, and cash is distributed to partners in monthly installments during the course of liquidation as follows: January – P 15,000; February - P 40,000; March - P 90,000; April – P 30,000 (final distribution) Required: a) Prepare a program to show how cash should be distributed during the entire course of liquidation, b) Using the program developed in (a), prepare schedules summarizing the payments to be made to partners at the end of each month. c) Prepare a statement of liquidation to summarize the course of liquidation.
RST partnership begins the liquidation process with the following balance sheet and profit and loss percentages Cash 280,000 Liabilities 200,000 Noncash Assets 300,000 R Capital (40%) 100,000 S Capital (30%) 150,000 T Capital (30%) 130,000 Liquidation expenses are estimated at $50,000. Assume any deficit balance in a partner’s capital account will not be repaid. What is the safe payment that can be made to partner T. answer please
Required: Prepare a statement of Partnership Liquidation
On September 23, 2021 – Pepsi and Coke have both decided to dissolve and liquidate their partnership. The balance sheet/statement of financial position on that date is as follows in the given picture. Required: 1. Prepare the cash priority program. 2. Prepare the liquidation journal entries and the statement of liquidation.
The partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each
A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000 Other assets: 238,000 Liabilities: 80,000 A, Capital: 88,000 B, Capital: 62,000 C, Capital: 56,000 On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.
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?
Excel Type. The second picture is the continuation of first picture.

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