D,E& F are partners with P&L ratio of5:4:1, respectively. The partnership is tobe liquidated. Prior to the liquidation, theStatement of financial position showsthe following balances : Cash 80,000Other Assets 720,000 Liab 80,000D,Cap 320,000 Е, Сар 240,000 F, Сар160,000 After realization, E received120,000 as settlement of his interest.1. How much was the loss on the sale ofassets ?2. How much did F receive in finalsettlement of his interest ?3. What amount of total cash wasdistributed to the partners ?

Partnership is a form of business which is run by two or more person. The profit and loss of the…

D,E& F are partners with P&L ratio of 5:4:1, respectively. The partnership is to be liquidated. Prior to the liquidation, the Statement of financial position shows the following balances : Cash 80,000 Other Assets 720,000 Liab 80,000 D,Cap 320,000 E, Cap 240,000 F, Cap 160,000 After realization, E received 120,000 as settlement of his interest. 1. How much was the loss on the sale of assets ? 2. How much did F receive in final settlement of his interest ? 3. What amount of total cash was distributed to the partners ?

D,E& F are partners with P&L ratio of 5:4:1, respectively. The partnership is to be liquidated. Prior to the liquidation, the Statement of financial position shows the following balances : Cash 80,000 Other Assets 720,000 Liab 80,000 D,Cap 320,000 E, Cap 240,000 F, Cap 160,000 After realization, E received 120,000 as settlement of his interest. 1. How much was the loss on the sale of assets ? 2. How much did F receive in final settlement of his interest ? 3. What amount of total cash was distributed to the partners ?

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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On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash – P100,000 Loan to B – P25,000 Other assets – P1,075,000 Liabilities to outsiders – P603,000 Due to C – P32,000 A, Capital – P216,000 B, Capital – P187,000 C, Capital – P162,000 A, B, and C share profits and losses in the ratio of 4:4:2, respectively CASE 1: The partnership was able to sell all the other assets for P1,120,000 and paid liquidation expenses of P10,000. 1. How much cash should A, B, and C receive?
P, Q and R are partners sharing profit and losses in the ratio of 5 : 3: 2. Q retires and the goodwill of the firm is valued at $ 9,000. Assuming that P and R will share the future profits in the ratio of 4 : 1. Pass the necessary journal entries in each of the following alternative cases: (a) When no goodwill account appears in the books. (b) When goodwill account appears at $ 30,000 in the Balance Sheet.
ABC, DEF and GHI who share earnings 5:3:2, respectively, decided to liquidate their partnership at which time their condensed balance sheet was as follows: Cash Other Assets Total 50,000 Liabilities 250,000 ABC, Capital DEF, Capital GHI, Capital 300,000 Total 60,000 80,000 90,000 70,000 300,000 The sale of other assets of resulted to a realization of 120,000, it was also expected that an additional liquidation expense was incurred. During payment to partners GHI received P40,000. Compute for the amount to be received by DEF.
The following are the liabilities and equity section of BEE Partnership at the time of liquidation: Liabilities P300,000, Loan- Ella, P20,000, Bea, Capital (30% P/L ratio), P60,000, Ella, Capital (40% P/L ratio), P40,000, Emma, Capital (30% P/L ratio), P80,000. Cash at the time of liquidation amounting P90,000. The following takes place at that time: The partners agreed that Bea will receive inventory and Emma will receive equipment before cash distribution. At that time, inventory has a book value of P4,000 but only realizable to P3,000, and equipment having a book value of P33,000 but revalued to P28,000. All other noncash assets were realized amounting P210,000 cash, but P10,000 of the cash proceeds were expensed for the liquidation process. Only Ella is solvent at that time. Required: Prepare the journal entry of the partnership dissolution.
The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Cash $ 90,000 Liabilities $ 170,000 Noncash assets 300,000 Perry, capital 70,000 Quincy, capital 50,000 Renquist, capital 100,000 Total $ 390,000 Total $ 390,000 Included in Perry’s Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent. For what amount would the noncash assets need to be sold in order for Quincy to receive some cash from the liquidation? Multiple Choice A. Any amount in excess of $170,000. B. Any amount in excess of $190,000. C. Any amount in excess of $260,000. D. Any amount in excess of $280,000. E. Any amount in excess of $300,000.
Item Nos. 13 and 14 are based on the following information: The following are the assets and liabilities of Tee, Pak, and Long partnership on April 30, 200B prior to liquidation: Cash P 25,000 Liabilities. P 52,000 Other Assets 180,000 40,000 Tee Capital (40%) Pak Capital (40%) 65,000 Long Capital (20%) 48,000 P 205,000 P 205,000 The first sale of noncash assets having a carrying amount of P 90,000 realized P 50,000. 13. The amount of cash each partner should receive in the first installment is: a. Tee, P 0; Pak, P 0; Long, P 23,000. b. Tee, P O; Pak, P 5,000; Long, P 18,000. c. Tee, P 12,000; Pak, P 13,000; Long, P 18,000. C. d. Tee, P 27,000; Pak, P 5,000; Long, P 18,000. 14. If P 3,000 cash is withheld for future liquidation expenses, how much cash should Long receive? a. P 21,000. c. P 17,000. b. P 20,000. d. P 3,000.
After operating for seven years, the books of the partnership of Kobe and Gasol showed the following balances: Net assets - P 169.000; Kobe, Capital - P 110,500: Gasol, Capital - P 58,500. If liquidation takes place at this point, and the net assets are at book value, how much would Kobe receive?
A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments: Current Assets Non-current Assets Total Liabilities ● A 617,500 848,000 150,000 B 672,500 970,000 178,000 They agreed to set up P5,000 each as uncollectible accounts on their accounts receivable. They also found out that their Non-current assets (all depreciable assets) were under-depreciated by P80,000 each. The partners agreed to equalize their capital balance upon formation. Compute the total capital of the partnership.
In liquidation, balances prior to the distribution of cash to the partners are: Cash $755000; James, Capital $410000; Laney, Capital $380000, and Howell, Capital $35000 deficiency. The income ratio is 6:2:2, respectively. How much cash should be distributed to Laney if Howell does not pay his deficiency? O $357000 O $346250 O $371250 O $380000
The Sheen, Jimmy and Carl partnership had the following balance sheet just before entering liquidation: Cash P10,000 Liabilities P130,000 Noncash assets 300,000 Sheen, capital 60,000 Jimmy, capital 40,000 Carl, capital 80,000 P310,000 P310,000 Sheen, Jimmy and Carl share profits and losses in a ratio of 2:4:4. Non-cash assets were sold for P180,000. Liquidation expenses were P10,000. Assume that Jimmy was personally insolvent and could not contribute any assets to the partnership, while Sheen and Carl were both solvent. What amount of cash would Sheen receive from the distribution of partnership assets?
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