Partners A, B, C, and D have been operating ABCD Partnership forten years. Due to a significant reduction in the demand for theirproduct over recent years, the partners have agreed to liquidate thepartnership. At the time of liquidation, balance sheet accountsconsisted of cash, P103,500; noncash assets, P300,000; liabilities tooutsiders, P60,000; capital credit balances for partners A, B, and C,P90,000, P150,000, and P120,000, respectively; and a debit capitalbalance for partner D of P16,500. Partners share equally in incomeand loss. It is estimated that the administrative cost of liquidation willtotal P4,500. While preparing for liquidation, an unrecorded liabilityof P7,500 was discovered.Required: For how much must the noncash assets be sold for partnerD to received at least P5,000?

The amount for which non-cash assets must be sold for Partner D to receive at least P5000 will be:…

Answered: Partners A, B, C, and D have been…

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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A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: Berzina, capital (40%) Horvath, capital (30%) Markov, capital (10%) Petronis, capital (20%) $ 59,000 39,000 34,000 34,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Berzina 147,500 Horvath Markov Petronis
Kind and Lucky formed a partnership by contributing cash amounting to P240,000 and P480,000 respectively on January 1, 2021. They agreed to share profits and losses in the ratio of 3:2. During the first year of operation, both Kind and Lucky made a withdrawal of P50,000 and P80,000 respectively. They also reported a net profit of P175,000. At the start of the following year, they agreed to admit Mature into the partnership by investing P300,000 for a one-fourth interest. How much is the total amount of asset revaluation?
On December 31, 2030, ABC Partnership’s Statement of Financial Positions shows that A, B and C have capital balances of P1,000,000, P600,000 and P400,000 with profit or loss ratio of 1:3:6.On January 1, 2030, C retired from the partnership and received P700,000. At the time of C’s retirement, an asset of the partnership is undervalued. What is the capital balance of A after the retirement of C? a. P925,000b. P1,075,000c. P1,12500d. P1,050,000
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
As of December 31, 2020, the books of Abad, Sison, and Dario Partnership showed capital balances of Abad- 80,000; Sison - 50000 and Dario - 10,000. The partners’ profit and loss ratio was 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for 74,000. After settlement of all liabilities amounting to 34,000, they still have 56,000 cash left for distribution. How much is the loss on realization?
"Partner A, Partner B, Partner C, and Partner D have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows: Cash 100000, Noncash Assets 300000, Accounts Payable 100000, Partner A Capital 25000, Partner B Capital 110000, Partner C Capital 100000,Partner D Capital 65000. During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Partner B and Partner C are personally solvent, but Partner A and Partner D are personally insolvent. The partners share profits and losses in the ratio of 4:2:1:3. what amount will be distributed to Partner B upon liquidation of the partnership?" 11667 68333 110000 80000
R, N, and A are partners of RNA Partnership. They decided to liquidate on March 31, of the current year. On this date, they have non-cash assets of 530,000 and liabilities of 250,000, including loan from A of 50,000. R, N, and A have capital balances of 80,000, 130,000, and 90,000, respectively. Profits and losses are 3:3:4 for R, N, and A. All partners are solvent. Determine the total loss on realization if A received 25,000 in the final settlement.
The Bui, Clemente, Devian, and Toussaint partnership has terminated operations and is undergoing liquidation. Sales commissions and other liquidation expenses are expected to total $19,000. The partnership’s balance sheet prior to the commencement of liquidation is as follows: Cash $ 27,000 Liabilities $ 40,000 Noncash assets 254,000 Bui, capital (20%) 18,000 Clemente, capital (40%) 40,000 Devian, capital (20%) 48,000 Toussaint, capital (20%) 135,000 Total assets $ 281,000 Total liabilities and capital $ 281,000 Required: Prepare a predistribution plan for this partnership.
The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent. The balance sheet reported by this partnership at the time that the liquidation commenced follows. The percentages indicate the allocation of profits and losses to each of the four partners. Based on the information provided, prepare a predistribution plan for liquidating this partnership.
Kim, Nicolas, and Troy are general partners in KNT Partnership sharing profits and losses in the ratio of 2:4:4, respectively. The partnership suffered financial distress and the partners decided to liquidate the partnership in December 2019. Accounts, after revaluation, adjustment, and correction, had the following ledger balances: Cash P 90,000 Accounts Receivable 205,000 Allowance for Doubtful Accounts 5,000 Merchandise Inventory 180,000 Equipment Accumulated Depreciation Equipment Accounts Payable Kim, Loan [Loan Payable - Kim] Troy, Loan [Loan Payable Troy] Kim, Capital Nicolas, Capital Troy, Capital 600,000 102,000 182,000 18,000 90,000 100,000 213,000 365,000 For the independent cases that follow in the course of winding up, prepare a statement of liquidation and necessary journal entries to record the liquidation process: A. The entire net receivable was collected, all inventories were sold at cost, and equipment was sold at its carrying value. B. Only 90% of net receivable was…
Item Nos. 10 to 12 are based on the following information: On August 31, 200F, Apeng, Poleng, and Openg decided to liquidate their partnership. Their capital accounts and profit sharing. ratio are as follows: Capital Profit & Loss Ratio P 150,000 50% Apeng 255,000 Poleng 30% 135,000 20% Openg- On this date, there were liabilities of P 187,500 still unpaid and the cash balance was zero. Apeng is insolvent. 10. If Openg received a total of P 22,500, Poleng would have received: a. P 33,750. C. P 77,250. b. P 47,250. d. P 86,250. 11. If Openg received a total of P 22,500, how much cash was realized from the sale of the noncash assets? a. P 431,250. C. P 281,250. b. P 296,250. d. P 196,250. 12. The cash to be realized on the sale of the noncash assets so that Apeng would receive a total of P 225,000 should be: a. P 897,500. c. P 752,500. b. P 877,500. d. P 750,000.
The following capital balances as of October 31, 2016 for the Partnership of Shell, Joke and No were as follows : Shell , Capital 204,000 Joke, Capital 132,000 No, Capital 360,000 No has decided to retire from the partnership on October 31. Their profit and loss ratio is 2/1 / 7 respectively . On October 31, the following assets should be appraised : Balance as of October 31 Appraised value Land 250,000 300,000 Machinery 120,000 100,000 Questions: 1. What is the share of Shell in the gain/ (loss) in the revaluations of Assets ? 2. What is the share of No in the gain/ (loss) in the revaluation of Assets?

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