As of July 31, the books of BSA Partnership showed capital balances of $40,000 for Ben, P25,000 for Echo, and P5,000 for Ned. They share profits and losses in the ratio of 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still had cash of P28,000 left for distribution. Assuming that any capital debit balance was uncollectible, Ben's share in the distribution of P28,000 cash is

As of July 31, the books of BSA Partnership showed capital balances of $40,000 for Ben, P25,000 for Echo, and P5,000 for Ned. They share profits and losses in the ratio of 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still had cash of P28,000 left for distribution. Assuming that any capital debit balance was uncollectible, Ben's share in the distribution of P28,000 cash is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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…
Aloha, Brooke and Cole are partners who share profits in the ratio 35.35.30 Capital balance of the partners are P200,000, P250,000 and P225,000 respectively. The partnership decided to dissolve the partnership and liquidate their assets. Assuming Cash Available for distribution amounted to P200,000 the partners Aloha, Brooke and Cole will received the following:
The partnership of Gordon, Handel, and Mitchell is considering possible liquidation because partner Mitchell is personally insolvent. The partners have the following capital account balances: $120,000, $140,000, and $80,000, respectively, and share profits and losses 35%, 45%, and 20%, respectively. The partnership has $400,000 in noncash assets that can be sold for $300,000. The partnership has $20,000 cash on hand, and $80,000 in liabilities. What is the minimum that partner Mitchell’s creditors would receive if they have filed a claim for $100,000? A. 0 B. 20,000 C. 60,000 D. 80,000 E. 100,000
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 250,000 150,000 Receivables (net) 100,000 80,000 Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. 3. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. HEAD's machine was purchased last year with a 5-year life. It's estimated current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…
Julie, Liza and Emma are partners who share profits and losses in the ratio of 2:3:5. The partners have decided to liquidate the partnership.Their capital accounts show the following balances: Julie - P60,000 credit; Liza - P90,000 credit; Emma - P20,000 debit after the sale of non-cash assets and the payment of all liabilities. What is the amount of cash available for distribution: a.) P130,000 b.) P120,000 c.) P60,000 d.) P90,000 SHOW COMPLETE SOLUTION
X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:
R, N, and A are partners of RNA Partnership. They decided to liquidate on March 31, of the current year. On this date, they have non-cash assets of 530,000 and liabilities of 250,000, including loan from A of 50,000. R, N, and A have capital balances of 80,000, 130,000, and 90,000, respectively. Profits and losses are 3:3:4 for R, N, and A. All partners are solvent. Determine the total loss on realization if A received 25,000 in the final settlement.
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, S22,700; other assets, $143,400; liabilities, $42,500; Morgan, capital, $58,400; Rockwell, capital, $65,200. The other assets were sold for $120,000. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling a. $58,400 Ob. $42,800 Oc. S15,133 Od. S22,700
On April 01, 2022, Chito and Ernie pooled their resources to form a partnership, with the firm taking over their business assets and assuming their business liabilities. On this date, their individual trial balances show the following: Chito Ernie P25,000 150,000 Cash P30,000 220,000 Non cash assets Accounts payable Notes payable Capital 60,000 45,000 100,000 105.000 115.000 The partners agreed that capital ratio must be 40:60 and that additional cash investment is to be made to raise the total capital to P350,000: • Non cash assets should be adjusted to their market values of: Chito, P120,000 and Ernie, P190,000. • Unrecorded liabilities in the books of Chito amounting to P5,000 while acerued interest on notes payable of Emie in the amount of P5,000 is to be recognized Prepaid rent in the books of Ernie amounting to P6,000 is to be recorded. Determine the amount of additional cash invested by Chito to conform with the agreement:
Item Nos. 10 to 12 are based on the following information: On August 31, 200F, Apeng, Poleng, and Openg decided to liquidate their partnership. Their capital accounts and profit sharing. ratio are as follows: Capital Profit & Loss Ratio P 150,000 50% Apeng 255,000 Poleng 30% 135,000 20% Openg- On this date, there were liabilities of P 187,500 still unpaid and the cash balance was zero. Apeng is insolvent. 10. If Openg received a total of P 22,500, Poleng would have received: a. P 33,750. C. P 77,250. b. P 47,250. d. P 86,250. 11. If Openg received a total of P 22,500, how much cash was realized from the sale of the noncash assets? a. P 431,250. C. P 281,250. b. P 296,250. d. P 196,250. 12. The cash to be realized on the sale of the noncash assets so that Apeng would receive a total of P 225,000 should be: a. P 897,500. c. P 752,500. b. P 877,500. d. P 750,000.
Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. .... . Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Requirements Debit Credit Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal…