EXERCISE 10. Journal Entries and Statement Preparation: With capital deficiency; solvent/insolvent partner/s. The partners in the law firm of Mega, Nega, and Pipa had strong differences of opinion concerning client acceptance policies that made them decide to liquidate the business on February 14, 2022. As of December 31, 2021, their capital balances were: Mega, P350,000; Nega, P100,000; and Pipa, P105,000. Liabilities, cash, and non-cash assets were P145,000, P40,000, and P660,000, respectively. Cash revenues and expenses for 2020 amounted to P77,000 and P115,000, respectively. Profits and losses are shared by Mega, Nega, and Pipa in the ratio of 5:3:2, respectively. REQUIRED: 1. Prepare and upload journal entries to record liquidation under each of the following cases: 1. Non-cash assets were sold for P200,000. Assume any deficient partner is solvent. 2. Non-cash assets were sold at a loss of P515,000. Assume any deficient partner is solvent. 3. Non-cash assets were sold for P200,000. Assume any deficient partner is insolvent. 4. Nnon-cash assets were sold at a loss of P515,000. Assume any deficient partner is insolvent. 2. Prepare and upload statement of liquidation for Item 1d.

EXERCISE 10. Journal Entries and Statement Preparation: With capital deficiency; solvent/insolvent partner/s. The partners in the law firm of Mega, Nega, and Pipa had strong differences of opinion concerning client acceptance policies that made them decide to liquidate the business on February 14, 2022. As of December 31, 2021, their capital balances were: Mega, P350,000; Nega, P100,000; and Pipa, P105,000. Liabilities, cash, and non-cash assets were P145,000, P40,000, and P660,000, respectively. Cash revenues and expenses for 2020 amounted to P77,000 and P115,000, respectively. Profits and losses are shared by Mega, Nega, and Pipa in the ratio of 5:3:2, respectively. REQUIRED: 1. Prepare and upload journal entries to record liquidation under each of the following cases: 1. Non-cash assets were sold for P200,000. Assume any deficient partner is solvent. 2. Non-cash assets were sold at a loss of P515,000. Assume any deficient partner is solvent. 3. Non-cash assets were sold for P200,000. Assume any deficient partner is insolvent. 4. Nnon-cash assets were sold at a loss of P515,000. Assume any deficient partner is insolvent. 2. Prepare and upload statement of liquidation for Item 1d.

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

A-1
Question 1 Prepare the Statement of Changes in Equity for the year ended 28 February 2021. INFORMATIONThe information given below was extracted from the accounting records of Preston Traders, a partnership business withPresley and Tony as partners. The following must be taken into account:(a) The Statement of Comprehensive Income reflected a net profit of R900 000 on 28 February 2021.(b) The partners are entitled to interest at 12% p.a. on their capital balances.Note: Presley decreased his capital by R200 000 on 01 June 2020 whilst Tony increased his capital by R200 000 on 01 September 2020. These capital changes have been recorded. (d) Tony is entitled to a bonus equal to 5% of the net profit before any of the above appropriations have been taken into account.(e) The remaining profit/loss must be shared between Presley and Tony in the ratio 3:2 respectively.
5 A, B and C are partners. On January 2, 2020, their capital balances and profit and loss ratio are as follows: ` Capital P&L ratio A P625,000 60% B 1,250,000 25% C 1,500,000 15% C withdrew P250,000 during the year. Net loss on December 31, 2020 totaled P500,000. Hence, the partners decided to liquidate the partnership. It is uncertain how much of the assets will ultimately yield but the favorable realization is expected. It is, therefore, agreed to distribute cash as it becomes available. There are unpaid liabilities of P125,000 and cash of P17,500. 1. The amount of non-cash assets before liquidation is: _______ 2. The amount to be realized by the partnership on the sale of its assets so that A will receive a total of P475,000 in the final settlement of his interest is: __________
On December 31, 2020, the partnership of Abe, Bravo, Charlie, and Delta decided to liquidate the following account balances: Cash NCA Liab. Bravo Charlie Abe Bravo Charlie Delfin Loan Loan (10%) (20%) (45%) (25%) 20,000 180,000 100,000 10,000 5,000 15,000 25,000 15,000 30,000 Assuming that that Bravo and Charlie are limited partners and Abe, Bravo, Charlie and Delfin are solvent up to 10,000; 15,000; 10,000; and 5,000 respectively; determine the cash settlement given to Abe if the NCAs were sold for 100,000
Show the solution in good accounting form
Can you help me with this one please
Dog
22. Help me selecting the right answer. Thank you
Yes, Please consider usman as posada.
6.
7. Show solution in good accounting form