Problem #2 _ump-Sum Liquidation Pangilinan, Gum ban, and Borda are liquidating their business. They share profits and osses in a 1:2:3 ratio, respectively, and currently have capital balances of P150,000, P130,000, and P120,000, respectively In addition, the partnership has P50,000 in cash, P150,000 in accounts payable, and P500,000 in noncash assets. Pangilinan and Gum ban are personally solvent, but Borda is not. Assuming that the noncash assets are sold for P200, 000. Prepare all liquidation journal entries!

Problem #2 _ump-Sum Liquidation Pangilinan, Gum ban, and Borda are liquidating their business. They share profits and osses in a 1:2:3 ratio, respectively, and currently have capital balances of P150,000, P130,000, and P120,000, respectively In addition, the partnership has P50,000 in cash, P150,000 in accounts payable, and P500,000 in noncash assets. Pangilinan and Gum ban are personally solvent, but Borda is not. Assuming that the noncash assets are sold for P200, 000. Prepare all liquidation journal entries!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Exercise 4 The balance sheet of the Jody, Kane, and Lark partnership on May 1, 2016 (before commencement of partnership liquidation) was as follows: 54,000 60,000 10,000 16,000 110,000 Accounts payable Notes payable Jody, capital (30%) Kane, capital (45%) Lark, capital (25%) Cash P Inventory Loan to Jody Loan to Lark 28,000 60,000 32,000 90,000 40,000 Plant assets-net Total assets 250,000 Total liab./equity 250,000 Liquidation events in May were as follows: - The inventory was sold for P6,000 below book value; - Plant assets with a book value of P50,000 were sold for P60,000. Other assumptions: All non-cash assets left unsold would be considered as a contingent loss of the partnership and should be deducted from the capital accounts of the partners according to their profit or loss sharing ratio. • No additional cash contribution from a partner with a deficit balance. A partner's deficit balance will be absorbed by the other partners based on their profit or loss sharing ratio •…
28. Show solution in good accounting form
ss
2
PROBLEM 1 (FTG REVISED) VAL, KHU, and LAWRENCE are partners in VAKHULAW CO. sharing profits in the ratio of 3:3:2. Investments are P600,000, P400,000, and P300,000, respectively. The partners agreed to admit TYONG-GO on the following basis: TYÖNG-GO is to pay VAL, P400,000 for 1/2 of VAL's interest; TYONG-GO is also to invest P300,000 in the business. The partners agreed that revaluation of assets must be determined based on the agreed capital. The total capital of the partnership is to be P2,000,000, of which TYONG-GO's interest is to be P500,000 upon admission. REQUIRED: 1. Prepare a statement of partners equity that will show the capital balances of VAL, KHU, LAWRENCE and TYONG-GO after admission of TYONG-GÒ, respectively. Present your solution and the statement in good form. 2. Prepare the entries upon admission of TYONG-GO.
Do not give answer in image
Show the solution in good accounting form
None
ILLUSTRATION 37 (Adjustment of capitals) Carter, Jones and Jennifer are partner sharing profits and losses in the ratio 3: 3:1. On Carter's retirement, capital of Jones and Jennifer were $ 8,000 and $ 82,000 respectively. They decided that their Capitals should be in the new profit sharing ratio. Calculate the adjustment of capital if new profit sharing ratio is 1:1. Adjustments to be made through cash. Any excess or deficit to paid off or brought in by the partners.
Exercise 4 The balance sheet of the Jody, Kane, and Lark partnership on May 1, 2016 (before commencement of partnership liquidation) was as follows: Accounts payable Notes payable Jody, capital (30%) Kane, capital (45%) Lark, capital (25%) Cash P Inventory Loan to Jody Loan to Lark Plant assets-net 54,000 60,000 10,000 16,000 110,000 28,000 60,000 32,000 90,000 40,000 250,000 Total liab./equity 250,000 Total assets Liquidation events in May were as follows: - The inventory was sold for P6,000 below book value; - Plant assets with a book value of P50,000 were sold for P60,000. Other assumptions: All non-cash assets left unsold would be considered as a contingent loss of the partnership and should be deducted from the capital accounts of the partners according to their profit or loss sharing ratio. No additional cash contribution from a partner with a deficit balance. A partner's deficit balance will be absorbed by the other partners based on their profit or loss sharing ratio •…
show solution
7. Show solution in good accounting form