The first image is the only requirement. The second image was the given and other guide to answer the question if needed (Optional). This is under Partnership Liquidation. Accounting for special transactions course. Thank u RECONSTRUCTION OF INFORMATIONo After all the assets (except the receivable from Leni) were realizedand the liabilites to outside creditors were settled, Isko receivedP140,000 in the cash distribution to the partners.REQUIREMENT:ANKCompute for the following.Only this partLoss on sales> Share of Leni in the cash distribution to the partners> Cash available for distribution to the partners> Net proceeds from the sale of the non-cash assets (except thereceivable from Leni) CASE DISCUSSION:o Leni and Isko are partners of Lenko Partnership which is currentlyliquidating. The firm's financial information is as follows:Cash20,000Accounts Payable30,000Accounts Receivable60,000Payable to Isko20,000Receivable from Leni10,000Leni, Capital – 60%250,000Inventory120,000Isko, Capital – 40%200,000Equipment, net290,000ТОTAL500,000ТОTAL500,000LUMP-SUM LIQUIDATIONThe non-cash assets were realized as follows:o 70% of the accounts receivable was collected; the balance isuncollectibleo The entire Inventory was sold for P20,000o P310,000 was received when the Equipment was soldo P12,000 liquidation expenses were paid.LUMP-SUM LIQUIDATIONCollection from accounts receivable (60K x 70%)Sale of inventorySale of equipmentLiquidation expensesNet proceedsLess: Carrying amt. of all non-cash assets,except Receivable from Leni (60K + 120K +290K)42,00020,000310,000(12,000)360.000(470,000)(110,000)LOSSLeni(60%)250.000Isko(40%)ТОTALCapital balancePavable to (Receivable from) partnerTotal450,000200,00020,000220,000(44.000) (110,000)176,000(10,000)240,00010,000460,000Allocation of loss -110K x 60% & 40%(66,000)Amounts received by the partners174,000350.0001INSTALLMENT LIQUIDATIONLenki will be liquidated on installment basis. Cash distributions tothe partners will be made as cash becomes available. In the firstmonth of liquidation, the non-cash assets were realized as follows:o 50% of the accounts receivable were collected, and of theremaining balance, P10,000 is deemed worthlesso 75% of the inventory was sold at 80% of costo Equipment with carrying amount of P200,000 was sold forP185,000o P12,000 liquidation expenses were paid. Additional P5,000 areexpected to be incurred in the subsequent periods.INSTALLMENT LIQUIDATION30,00072,000Collection from accounts receivable (60K x 50%)Sale of inventory (120K x 75% x 80%)Sale of equipmentLiquidation expensesEstimated future liquidation costNet proceedsLess: Carrying amt. of all non-cash assets,except Receivable from Leni (60K + 120K +290K)185,000(12,000)(5,000)270,000(470,000)(200,000)LOSSLeni(60%)250.000(10,000)240.000Isko(40%)200,00020,000220,000ΤΟTALCapital balancePayable to (Receivable from) partnerTotal450,00010,000460,000Allocation of loss(120,000)(80,000) (200,000)Amounts received by the partners120,000140,000260,0002

When two or more entities come together and form a business, it is known as partnership firm. The…

o Leni and Isko are partners of Lenko Partnership which is currently liquidating. The firm's financial information is as follows: Cash 20,000 Accounts Payable 30,000 Accounts Receivable 60,000 Payable to Isko 20,000 Receivable from Leni 10,000 Leni, Capital – 60% 250,000 Inventory 120,000 Isko, Capital – 40% 200,000 Equipment, net 290,000 ТОTAL 500,000 ТОTAL 500,000

o Leni and Isko are partners of Lenko Partnership which is currently liquidating. The firm's financial information is as follows: Cash 20,000 Accounts Payable 30,000 Accounts Receivable 60,000 Payable to Isko 20,000 Receivable from Leni 10,000 Leni, Capital – 60% 250,000 Inventory 120,000 Isko, Capital – 40% 200,000 Equipment, net 290,000 ТОTAL 500,000 ТОTAL 500,000

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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