Problem 2: JFK partnership engaged in steel manufacturing business had the following condensed financial position prior to liquidation: ASSETS LIABILITIES AND CAPITAL Cash P24,000 Liabilities P70,000 Loan payable to J J, Capital (50%) F, Capital (30%) K, Capital (20%) Total Noncash assets 360,000 30,000 90,000 140,000 54,000 P384,000 Total P384,000 Assuming assets with a book value of P140,000 were sold for P100,000 and that all available cash was distributed. For what amount would the remaining assets have to be sold in order for partner Fto receive a total of P158,000 cash after liquidation?
Problem 2: JFK partnership engaged in steel manufacturing business had the following condensed financial position prior to liquidation: ASSETS LIABILITIES AND CAPITAL Cash P24,000 Liabilities P70,000 Loan payable to J J, Capital (50%) F, Capital (30%) K, Capital (20%) Total Noncash assets 360,000 30,000 90,000 140,000 54,000 P384,000 Total P384,000 Assuming assets with a book value of P140,000 were sold for P100,000 and that all available cash was distributed. For what amount would the remaining assets have to be sold in order for partner Fto receive a total of P158,000 cash after liquidation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2: JFK partnership engaged in steel manufacturing business had the following
condensed financial position prior to liquidation:
ASSETS
LIABILITIES AND CAPITAL
Cash
P24,000
Liabilities
P70,000
Noncash assets
Loan payable to J
J, Capital (50%)
F, Capital (30%)
K, Capital (20%)
Total
360,000
30,000
90,000
140,000
54,000
Total
P384,000
P384,000
Assuming assets with a book value of P140,000 were sold for P100,000 and that all available cash
was distributed. For what amount would the remaining assets have to be sold in order for partner
F to receive a total of P158,000 cash after liquidation?
Transcribed Image Text:Problem 1: SCA Partnership has the following account balances before liquidation:
Cash
P350,000
Liabilities
P1,125,000
Noncash assets
7,375,000
Loan from A
50,000
S, Capital (40%)
C, Capital (40%)
A, Capital (20%)
Loan to C
150,000
1,250,000
Receivable from s
20,000
1,900,000
Expenses
2,230,000
1,000,000
Revenues
4,800,000
During June, some noncash assets were sold that resulted to a loss of P46,125. Liquidation
expenses of P175,000 were paid and additional expenses armounting to P90,000 were expected to
be incurred through the following months of liquidation of the partnership. Liabilities to outsiders
amounting to P875,000 were paid. What is the book value of the noncash assets which were sold
for C to receive P555,550?
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