Problem #15 The assets and equities of the Perdales, Ceballus and Bandonell partnership at the of its fiscal year ended Oct. 31, 2019 are as follows: Installment Liquidation: Cash Priority Program Equities Assets P 50,000 Liabilities Loan from Bandonell P 15,000 20,000 40,000 70,000 5,000 10,000 45,000 30,000 15,000 P150,000 Cash Perdales, Capital (30%) Ceballus, Capital (50%) Bandonell, Capital (20%) Receivable-net Inventory Property and Equipment Loan to Ceballus P150,000 The partners decided to liquidate the partnership. They estimated that the non-cas assets, other than the loan to Ceballus, can be converted into P100,000 cash over th two-month period ending Dec. 31, 2019. Cash is to be distributed to the appropriat parties as it becomes available during the liquidation process. Required: 1. The partner most vulnerable to partnership losses on liquidation is: a. Perdales b. Bandonell C. Ceballus d. Ceballus and Perdales equally 2. If P65,000 is available for the first distribution, it should be paid to Priority Creditors Perdales Ceballus Bandonell P60,000 b. a. P 5,000 12,000 1,500 5,000 PO PO 50,000 60,000 d. C. 3,000 50,000 2,500 1,000 10,000 3. If a total amount of P7,500 is available for distribution to partners after all outside liabilities are paid, it should be paid as follows: Perdales Ceballus Bandonell a. P7,500 P O b. P O 3,750 3,750 2,500 C. 2,250 3,750 d. 2,500 1,500 2,500
Problem #15 The assets and equities of the Perdales, Ceballus and Bandonell partnership at the of its fiscal year ended Oct. 31, 2019 are as follows: Installment Liquidation: Cash Priority Program Equities Assets P 50,000 Liabilities Loan from Bandonell P 15,000 20,000 40,000 70,000 5,000 10,000 45,000 30,000 15,000 P150,000 Cash Perdales, Capital (30%) Ceballus, Capital (50%) Bandonell, Capital (20%) Receivable-net Inventory Property and Equipment Loan to Ceballus P150,000 The partners decided to liquidate the partnership. They estimated that the non-cas assets, other than the loan to Ceballus, can be converted into P100,000 cash over th two-month period ending Dec. 31, 2019. Cash is to be distributed to the appropriat parties as it becomes available during the liquidation process. Required: 1. The partner most vulnerable to partnership losses on liquidation is: a. Perdales b. Bandonell C. Ceballus d. Ceballus and Perdales equally 2. If P65,000 is available for the first distribution, it should be paid to Priority Creditors Perdales Ceballus Bandonell P60,000 b. a. P 5,000 12,000 1,500 5,000 PO PO 50,000 60,000 d. C. 3,000 50,000 2,500 1,000 10,000 3. If a total amount of P7,500 is available for distribution to partners after all outside liabilities are paid, it should be paid as follows: Perdales Ceballus Bandonell a. P7,500 P O b. P O 3,750 3,750 2,500 C. 2,250 3,750 d. 2,500 1,500 2,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4-54 | WIN Ballada's Partnership and Corporation Accounting
Problem #15
The assets and equities of the Perdales, Ceballus and Bandonell partnership at the
of its fiscal year ended Oct. 31, 2019 are as follows:
Installment Liquidation: Cash Priority Program
Equities
Assets
P 50,000
Liabilities
P 15,000
20,000
40,000
70,000
5,000
10,000
Loan from Bandonell
Perdales, Capital (30%)
Ceballus, Capital (50%)
Bandonell, Capital (20%)
Cash
45,000
30,000
Receivable-net
Inventory
15,000
Property and Equipment
Loan to Ceballus
P150,000
P150,000
The partners decided to liquidate the partnership. They estimated that the non-cash
assets, other than the loan to Ceballus, can be converted into P100,000 cash over the
two-month period ending Dec. 31, 2019. Cash is to be distributed to the appropriate
parties as it becomes available during the liquidation process.
Required:
1. The partner most vulnerable to partnership losseś on liquidation is:
a.
Perdales
b. Bandonell
C.
Ceballus
d. Ceballus and Perdales equally
2. If P65,000 is available for the first distribution, it should be paid to
Priority
Creditors
Perdales
Ceballus
Bandonell
P60,000
b.
a.
P 5,000
12,000
50,000
P
P 0
60,000
50,000
C.
3,000
1,500
5,000
d.
2,500
1,000
10,000
3. If a total amount of P7,500 is available for distribution to partners after all outside
liabilities are paid, it should be paid as follows:
Perdales
Ceballus
Bandonell
a.
P7,500
P O
b.
P O
3,750
3,750
2,500
C.
2,250
3,750
1,500
d.
2,500
2,500
1FRA
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