ACC 114 PARTNERSHIP AND CORPORATE LIQUIDATION 1. ABC Partnership is winding up its affairs and submitted the following trial balance at April 30, 2021. Debit 60,000 220,000 140,000 990,000 120,000 75,000 Credit Cash Accounts Receivable Inventory Property, plant, and eqipment A Loan C Loan Accounts Payable B Loan A Capital (50%) B Capital (30%) Capital (20%) 470,000 70,000 400,000 400,000 265,000 1,605,000 1,605,000 The partners liquidated the partnership and cash is distributed to the partners at the end of each month. Summary of transaction follows: " month: • Only 70% of the accounts receivable is collected, the balance is uncollectible. • P100,000 was received from the entire inventory. • 50% of the property, plant, and equipment is realized at P350,000. • Liquidation expenses of P10,000 is paid. • P300,000 of accounts payable is paid. • P20,000 is reserved for liquidation expenses. The balance of cash is paid to partners. month: • The remaining property, plant and equipment is realized at P300,000. • Liquidation expenses of P20,000 is paid. • Unrecorded liabillties of P10,000 is paid. • The remaining accounts payable is paid. • Balance, to partners. Required: Prepare a schedule showing how the cash available in the 1" month and 2 month is distributed to the partners: (a) Periodic schedule of payment and (b) Cash Priority Program (CPP).
ACC 114 PARTNERSHIP AND CORPORATE LIQUIDATION 1. ABC Partnership is winding up its affairs and submitted the following trial balance at April 30, 2021. Debit 60,000 220,000 140,000 990,000 120,000 75,000 Credit Cash Accounts Receivable Inventory Property, plant, and eqipment A Loan C Loan Accounts Payable B Loan A Capital (50%) B Capital (30%) Capital (20%) 470,000 70,000 400,000 400,000 265,000 1,605,000 1,605,000 The partners liquidated the partnership and cash is distributed to the partners at the end of each month. Summary of transaction follows: " month: • Only 70% of the accounts receivable is collected, the balance is uncollectible. • P100,000 was received from the entire inventory. • 50% of the property, plant, and equipment is realized at P350,000. • Liquidation expenses of P10,000 is paid. • P300,000 of accounts payable is paid. • P20,000 is reserved for liquidation expenses. The balance of cash is paid to partners. month: • The remaining property, plant and equipment is realized at P300,000. • Liquidation expenses of P20,000 is paid. • Unrecorded liabillties of P10,000 is paid. • The remaining accounts payable is paid. • Balance, to partners. Required: Prepare a schedule showing how the cash available in the 1" month and 2 month is distributed to the partners: (a) Periodic schedule of payment and (b) Cash Priority Program (CPP).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:АCC 114
PARTNERSHIP AND CORPORATE LIQUIDATION
1. ABC Partnership is winding up its affairs and submitted the following trial balance at
April 30, 2021.
Debit
Credit
Cash
Accounts Receivable
Inventory
Property, plant, and equipment
A Loan
60,000
220,000
140,000
990,000
120,000
75,000
C Loan
Accounts Payable
B Loan
A Capital (50%)
B Capital (30%)
Capital (20%)
470,000
70,000
400,000
400,000
265,000
1,605,000
1,605,000
The partners liquidated the partnership and cash is distributed to the partners at the end
of each month. Summary of transaction follows:
1" month:
• Only 70% of the accounts receivable is collected, the balance is uncollectible.
• P100,000 was received from the entire inventory.
• 50% of the property, plant, and equipment is realized at P350,000.
Liquidation expenses of P10,000 is paid.
P300,000 of accounts payable is paid.
P20,000 is reserved for liquidation expenses.
The balance of cash is paid to partners.
z" month:
The remaining property, plant and equipment is realized at P300,000.
Liquidation expenses of P20,000 is paid.
Unrecorded liabilities of P10,000 is paid.
The remaining accounts payable is paid.
• Balance, to partners.
Required: Prepare a schedule showing how the cash available in the 1" month and
2nd month is distributed to the partners: (a) Periodic schedule of payment and (b)
Cash Priority Program (CPP).
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