Item Nos. 26 to 28 are based on the following information: Kia, Lia, and Mia are partners sharing profits and losses equally. The partnership is liquidated. After all assets are converted into cash and all liabilities are paid, P 520,000 cash remains available for distribution to the partners. Kia and Lia have capital balances of P 400,000 and P 300,000, respectively. Mia has a debit balance of P 180,000 in her capital account. 26. If Mia is personally solvent, how much cash will be distributed to Kia? P 340,000. a. P 260,000. C. b. P 310,000. d. P 400,000. 27. If Mia is personally insolvent, how much cash will be distributed to Kia? a. P 260,000. c. P 340,000. b. P 310,000. d. P 400,000. 28. If the capital of Kia prior to realization is P425,000, what is the loss on realization? a. P 25,000. Pplw-C. c. P 75,000. d. P 100,000. b. P 50,000. Item Nos. 29 and 30 are based on the following information: Noly, Ollie, and Poly are partners with capital balances of P 350,000, P 250,000, and P 350,000 who share profits 30%, 20%, and 50%, respectively. The partners agreed to dissolve the business. All of the noncash assets were sold and all the cash available was used to pay liabilities of P 450,000 except one for P 50,000. Poly is personally insolvent but the other two partners are able to meet any indebtedness to the firm. 29. On the remaining claim against the partnership, Noly is to absorb: a. P 15,000. C. P 30,000. b. P 25,000. d. P 40,000. 30. If the cash balance before realization is P 200,000, how much are the noncash assets? a. P 1,000,000. c. P 1,200,000. b. P 1,050,000. d. P 1,250,000.
Item Nos. 26 to 28 are based on the following information: Kia, Lia, and Mia are partners sharing profits and losses equally. The partnership is liquidated. After all assets are converted into cash and all liabilities are paid, P 520,000 cash remains available for distribution to the partners. Kia and Lia have capital balances of P 400,000 and P 300,000, respectively. Mia has a debit balance of P 180,000 in her capital account. 26. If Mia is personally solvent, how much cash will be distributed to Kia? P 340,000. a. P 260,000. C. b. P 310,000. d. P 400,000. 27. If Mia is personally insolvent, how much cash will be distributed to Kia? a. P 260,000. c. P 340,000. b. P 310,000. d. P 400,000. 28. If the capital of Kia prior to realization is P425,000, what is the loss on realization? a. P 25,000. Pplw-C. c. P 75,000. d. P 100,000. b. P 50,000. Item Nos. 29 and 30 are based on the following information: Noly, Ollie, and Poly are partners with capital balances of P 350,000, P 250,000, and P 350,000 who share profits 30%, 20%, and 50%, respectively. The partners agreed to dissolve the business. All of the noncash assets were sold and all the cash available was used to pay liabilities of P 450,000 except one for P 50,000. Poly is personally insolvent but the other two partners are able to meet any indebtedness to the firm. 29. On the remaining claim against the partnership, Noly is to absorb: a. P 15,000. C. P 30,000. b. P 25,000. d. P 40,000. 30. If the cash balance before realization is P 200,000, how much are the noncash assets? a. P 1,000,000. c. P 1,200,000. b. P 1,050,000. d. P 1,250,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Item Nos. 26 to 28 are based on the following information:
Kia, Lia, and Mia are partners sharing profits and losses equally. The
partnership is liquidated. After all assets are converted into cash and all
liabilities are paid, P 520,000 cash remains available for distribution to the
partners. Kia and Lia have capital balances of P 400,000 and P 300,000,
respectively. Mia has a debit balance of P 180,000 in her capital account.
26. If Mia is personally solvent, how much cash will be distributed to Kia?
P 340,000.
a. P 260,000.
C.
b. P 310,000.
d.
P 400,000.
27. If Mia is personally insolvent, how much cash will be distributed to Kia?
a. P 260,000.
c. P 340,000.
b. P 310,000.
d.
P 400,000.
28. If the capital of Kia prior to realization is P425,000, what is the loss on
realization?
a. P 25,000.
Pplw-C.
c. P 75,000.
d. P 100,000.
b. P 50,000.
Item Nos. 29 and 30 are based on the following information:
Noly, Ollie, and Poly are partners with capital balances of P 350,000,
P 250,000, and P 350,000 who share profits 30%, 20%, and 50%, respectively.
The partners agreed to dissolve the business. All of the noncash assets were
sold and all the cash available was used to pay liabilities of P 450,000 except one
for P 50,000. Poly is personally insolvent but the other two partners are able to
meet any indebtedness to the firm.
29. On the remaining claim against the partnership, Noly is to absorb:
a. P 15,000.
C. P 30,000.
b. P 25,000.
d. P 40,000.
30. If the cash balance before realization is P 200,000, how much are the
noncash assets?
a.
P 1,000,000.
c.
P 1,200,000.
b. P 1,050,000.
d.
P 1,250,000.
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Why did the solvency status of Mia did not affect the cash distributed to Kia? Why no.26 & no.27 still has the same answer even though it has a different solvency status?
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