Installment Liquidation: Cash Priority Program The capital and loan balances for partners Bernardino, Lee and Ong are shown below They share profits or losses in the ratio of 4:4:2, respectively. Loans Payable-Bernardino P100,000 Loans Payable-Lee 100,000 Loans Payable- Ong 150,000 Bernardino Capita 150,000 Lee, Capital 350,000 Ong, Capital 200,000 Total P 1,050,000 Required: 1. Prepare a cash priority program. 2. Assume that P250,000 cash is available for initial distribution, prepare the entries to record the distribution to the partners.
Installment Liquidation: Cash Priority Program The capital and loan balances for partners Bernardino, Lee and Ong are shown below They share profits or losses in the ratio of 4:4:2, respectively. Loans Payable-Bernardino P100,000 Loans Payable-Lee 100,000 Loans Payable- Ong 150,000 Bernardino Capita 150,000 Lee, Capital 350,000 Ong, Capital 200,000 Total P 1,050,000 Required: 1. Prepare a cash priority program. 2. Assume that P250,000 cash is available for initial distribution, prepare the entries to record the distribution to the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Installment Liquidation: Cash Priority Program
The capital and loan balances for partners Bernardino, Lee and Ong are shown below They share
Loans Payable-Bernardino P100,000
Loans Payable-Lee 100,000
Loans Payable- Ong 150,000
Bernardino Capita 150,000
Lee, Capital 350,000
Ong, Capital 200,000
Total P 1,050,000
Required:
1. Prepare a cash priority program.
2. Assume that P250,000 cash is available for initial distribution, prepare the entries
to record the distribution to the partners.
Transcribed Image Text:#7 Installment Liquidation: Cash Priority Program
The capital and loan balances for partners Bernardino, Lee and Ong are shown below
They share profits or losses in the ratio of 4:4:2, respectively.
Loans Payable-Bernardino
Loans Payable-Lee
Loans Payable- Ong
Bernardino Capital
Lee, Capital
Ong, Capital
Total
P 100,000
100,000
150,000
150,000
350,000
200,000
P 1,050,000
Required:
1. Prepare a cash priority program.
2. Assume that P250,000 cash is available for initial distribution, prepare the entries
to record the distribution to the partners.
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