Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to liquidate. The condensed statement of financial position immediately prior to the liquidation shows the following: Cash Non-cash Assets P 400,000 1,600,000 560,000 Liabilities E, Loan 40,000 E, Capital 180,000 F, Capital 420,000 G. Capital 800,000 After paying liabilities to partnership creditors, cash of P830,000 is available for distribution to partners. Any capital deficiency is made good by the deficient partner, since all three partners are personally solvent. 12. How much was the loss on realization? 13. How much would F receive in final settlement of his interest? 14. How much would G receive in final settlement of his interest?

Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to liquidate. The condensed statement of financial position immediately prior to the liquidation shows the following: Cash Non-cash Assets P 400,000 1,600,000 560,000 Liabilities E, Loan 40,000 E, Capital 180,000 F, Capital 420,000 G. Capital 800,000 After paying liabilities to partnership creditors, cash of P830,000 is available for distribution to partners. Any capital deficiency is made good by the deficient partner, since all three partners are personally solvent. 12. How much was the loss on realization? 13. How much would F receive in final settlement of his interest? 14. How much would G receive in final settlement of his interest?

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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