INSTALLMENT LIQUIDATION Problem 1: Jesus, James and Jane are partners who share profits and losses in the ratio of 35:25:40, respectively. The statement of financial position of the partnership as of December 31,2017 includes the following accounts: Cash P80,000 Liabilities to outsider P180,000 Non cash assets 1,100,000 James, Loan 20,000 Jesse, Capital 327,000 James, Capital 235,000 ____________ Jane, Capital ___418,000___ Total 1,180,000 Total 1,180,000 On January 1, 2018, the partners decided to liquidate their partnership. For the month of January, some noncash assets were sold at a loss of P20,000. Half of the liabilities to outsiders were settled during January. Jesse received P1,500 from the first cash distribution. Cash withheld for possible liquidation expenses and unrecognized liablities amounted to P12,600. 12. How much is the total cash withheld at the end of January? A. 0 B. 12,600 C. 102,600 D. 171,000 10. What was the carrying value of the noncash assets sold in January? A. 182,600 B. 202,600 C. 897,400 D. 910,000 11. What was the selling price of the noncash assets sold during January? A. 182,600 B. 202,600 C. 222,600 D. 890,00
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
INSTALLMENT LIQUIDATION
Problem 1:
Jesus, James and Jane are partners who share
statement of financial position of the
Cash P80,000 Liabilities to outsider P180,000
Non cash assets 1,100,000 James, Loan 20,000
Jesse, Capital 327,000
James, Capital 235,000
____________ Jane, Capital ___418,000___
Total 1,180,000 Total 1,180,000
On January 1, 2018, the partners decided to liquidate their partnership. For the month of January, some
noncash assets were sold at a loss of P20,000. Half of the liabilities to outsiders were settled during January.
Jesse received P1,500 from the first cash distribution. Cash withheld for possible liquidation expenses and
unrecognized liablities amounted to P12,600.
12. How much is the total cash withheld at the end of January?
A. 0
B. 12,600
C. 102,600
D. 171,000
10. What was the carrying value of the noncash assets sold in January?
A. 182,600
B. 202,600
C. 897,400
D. 910,000
11. What was the selling price of the noncash assets sold during January?
A. 182,600
B. 202,600
C. 222,600
D. 890,00
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