No.1On Jan 10, 2023, partners Kong, Nang and Dee of KND Partnership decided to terminate the operation of their business because of the huge armount of loss incurred in 2022. The business was heavily affected bythe pandemic due to Covid-19. Kong, Nang and Dee share profits and losses in the ratio 433, respectively All pariners are personaily solvent, and Nang is a limited partner. The Statement of Financial Position ofKND Partnership as of December 31, 2022 follows:Assets:Liabilities & Partners' EquityCashAccounts Payable256,000900 000Accounts ReceivableDue to T. Nang60,00030.000Allow. For Bad DebtsDue to C. Dee(6,000)20,000Due from F. Kong20,000F. Kong, Capital140.C00EquipmentT. Nang, Capital101,2001,200,000Accumulated Depreciation, EquipmentC. Dee(200,000)138,800Total AssetsTotal Liabilities & Partner's Equity1,330,0001,330,000The customers' accounts are no longer collectible, and the equipment were sold at a loss of P400,000The liabilities to outside creditors were paid in full, using all cash available and contribution of Kong from his personal savings accountAbsorption of losses from realization of non-cash assets resulted toSelect the correct responseDeficiency only in Kong, CapitalDeficiency in capital of all partnersO Deficiency in Kong, Capital and Dee, CapitalO Deficiency in Kong. Capital and Nang. Capital

There are several forms of business organisation which can be adopted. These are partnership, sole…

Allów. For Bad Debts Due to C. Dee (6,000) 20,000 Due from F. Kong F. Kong, Capital 20,000 140.000 Equipment 1,200,000 T. Nang, Capital 101,200 Accumulated Depreciation, Equipment C. Dee (200,000) 138,800 Total Assets Total Liabilities & Partner's Equity 1,330,000 1,330.000 The customers' accounts are no longer collectible, and the equipment were sold at a loss of P400,000 The liabilities to outside creditors were paid in full, using all cash available and contribution of Kong from his personal savings account Absorption of losses from realization of non-cash assets resulted to Select the correct response O Deficiency only in Kong. Capital O Deficiency in capital of all partners O Deficiency in Kong, Capital and Dee, Capital Deficiency in Kong. Capital and Nang, Capital

Allów. For Bad Debts Due to C. Dee (6,000) 20,000 Due from F. Kong F. Kong, Capital 20,000 140.000 Equipment 1,200,000 T. Nang, Capital 101,200 Accumulated Depreciation, Equipment C. Dee (200,000) 138,800 Total Assets Total Liabilities & Partner's Equity 1,330,000 1,330.000 The customers' accounts are no longer collectible, and the equipment were sold at a loss of P400,000 The liabilities to outside creditors were paid in full, using all cash available and contribution of Kong from his personal savings account Absorption of losses from realization of non-cash assets resulted to Select the correct response O Deficiency only in Kong. Capital O Deficiency in capital of all partners O Deficiency in Kong, Capital and Dee, Capital Deficiency in Kong. Capital and Nang, Capital

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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