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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Partnership Liquidation
PROBLEM 4: MULTIPLE CHOICE-COMPUTATIONAL
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
(AICPA)
Cash
Other assets
Total assets
450,000
20,000
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
470,000
a. 25,000
b. 24,000
Total
Accounts payable
Smith, capital
Jones, capital
2. The statement of financial position of the partnership of A, B
and C shows the following information:
22,400
212,000
234,400
151
c. 159,000
120,000
195,000
155,000
470,000
Liabilities
A, capital (50%) -
B, capital (25%)
C, capital (25%)
Total liabilities & equity
d. 195,000
38,400
76,000
The partners realized P56,000 from the first installment sale of
non-cash assets with total carrying amount of P120,000. How
much did B receive from the partial liquidation?
c. 16,000
d. 0
64,000
56,000
234,400
3. The statement of financial position of the partnership of A, B
and C shows the following information:
Cash
40,000 Liabilities
Noncash assets
720,000 B, Loan
C, Loan
A, Capital (50%)
B, Capital (30%)
C, Capital (20%)
760,000 Total Liab. & Equity
300,000
64,000
20,000
250,000
86,000
40,000
760,000
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