Partnership LiquidationPROBLEM 4: MULTIPLE CHOICE-COMPUTATIONAL1. The following condensed balance sheet is presented for thepartnership of Smith and Jones, who share profits and lossesin the ratio of 60:40, respectively:Other assetsSmith, loan(AICPA)CashOther assetsTotal assets450,00020,000The partners have decided to liquidate the partnership. If theother assets are sold for P385,000, what amount of the availablecash should be distributed to Smith?a. 136,000b. 156,000470,000a. 25,000b. 24,000TotalAccounts payableSmith, capitalJones, capital2. The statement of financial position of the partnership of A, Band C shows the following information:22,400212,000234,400151c. 159,000120,000195,000155,000470,000LiabilitiesA, capital (50%) -B, capital (25%)C, capital (25%)Total liabilities & equityd. 195,00038,40076,000The partners realized P56,000 from the first installment sale ofnon-cash assets with total carrying amount of P120,000. Howmuch did B receive from the partial liquidation?c. 16,000d. 064,00056,000234,4003. The statement of financial position of the partnership of A, Band C shows the following information:Cash40,000 LiabilitiesNoncash assets720,000 B, LoanC, LoanA, Capital (50%)B, Capital (30%)C, Capital (20%)760,000 Total Liab. & Equity300,00064,00020,000250,00086,00040,000760,000

Liquidation means where the business is shut down , assets are sold out and liabilities are paid…

PROBLEM 1. The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively: Other assets Smith, loan 450,000 20,000 (AICPA) 470,000 Accounts payable Smith, capital Jones, capital The partners have decided to liquidate the partnership. If the other assets are sold for P385,000, what amount of the available cash should be distributed to Smith? a. 136,000 b. 156,000 120,000 195,000 155,000 470,000 c. 159,000 d. 195,000

PROBLEM 1. The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively: Other assets Smith, loan 450,000 20,000 (AICPA) 470,000 Accounts payable Smith, capital Jones, capital The partners have decided to liquidate the partnership. If the other assets are sold for P385,000, what amount of the available cash should be distributed to Smith? a. 136,000 b. 156,000 120,000 195,000 155,000 470,000 c. 159,000 d. 195,000

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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