PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J. Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare joumal entries pertinent to the liquidation process.

PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J. Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare joumal entries pertinent to the liquidation process.

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

C4.7
Case Study Louise Mathew is one of three full partners in a newly formed business. Without the permission of the other two partners, she enters into a written contract with a creditor. The transaction binds the firm in the amount of $75,000. Louise then leaves the area and cannot be located by the other two partners. Directions: Answer the following questions and include the characteristics of this business form to provide support for your answer. Are the other two partners liable for the $75,000? What legal features of the partnership apply to this case? Is what Louise has done legal?
4.12 A, B, and C are partners sharing profits in the ratio of 3:2:5, respectively. The goodwill of the business (not recognized in the books) is valued at P 12,000. The capital accounts of the partners are as follows: P 40,000 30,000 20,000 P 90,000 C retires and is paid P 26,000. REQUIRED: Give journal entries to record the settlement with C using 3 methods. ABC
2. The sale of the non-cash assets resulted in a total loss ofA. P70,000b. P60,000c.P65,000 d. P80.000e. answer not given
28. Show solution in good accounting form
5
ILLUSTRATION 12. A, B and C are partners in a firm sharing profits and losses in the ratio of 2: 2: 1. They decided to dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive as his remuneration 5% of the amounts ultimately paid to A and C but in lieu of this he is to bear all expenses of realisation. Balance Sheet of the firm on the date of dissolution is as under : Liabilities Assets Creditors A's Capital B's Capital 4,229 1,317 3,960 2,970 Debtors Less : Provision 211 4,018 1,872 Stock Cash 290 Other Assets C- (Overdrawn) 1,710 357 8,247 8,247 B informs of the following realisations : Debtors $ 3,462 ; Stock $ 1,444 ; Goodwill $ 50 ; Other Assets $ 914. Creditors which were not recorded in books are now paid $100. Expenses of realisation amount to his insolvency. Close books of the firm. 310. C is able to contribute only $ 100 beyond which he expresses
The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below depicts their financial position before liquidation: Cash Loans to Tank Other non-cash assets P 30,000 70,000 600,000 The other non-cash assets were sold at P400,000. 1. The excess cash distributed to Kylie is P40,000 A. True B. False Accounts payables P Kylie, loan Kylie, capital (40%) Bambo, capital (20%) Tank, capital (40%) 2. The excess cash distributed to Tank is P110,000 A. True B. False 3. The ending balance of non-cash assets after liquidation is P200,000 A. True B. False 280,000 30,000 90,000 150,000 150,000
On September 23, 2021 – Pepsi and Coke have both decided to dissolve and liquidate their partnership. The balance sheet/statement of financial position on that date is as follows in the given picture. Required: 1. Prepare the cash priority program. 2. Prepare the liquidation journal entries and the statement of liquidation.
PROBLEM RECOGNITION TASK Determine the maximum deposit insurance coverage by PDIC in the following items. 5. Ronel is a partner of MW Partnership and a stockholder of LG Corporation. He has the following deposit accounts in a closed bank: Ronel’s business (sole proprietorship) P350,000 Ronel’s personal savings account P500,000 Ronel and Jhun and Eff and Karla P600,000 Ronel and MW Partnership P650,000 Ronel and LG Corporation P400,000 What is the maximum deposit insurance coverage as far as Ronel is concerned?
Show the solution in good accounting form
2. Happy. Jolly and Merry decide to dissolve their partnership on 1 December 2006 after being in business for many years. The balance sheet of the partnership as at 30 November 2006 was as follows: Assets Non-current assets Furniture and fittings Motor vehicles Current assets Inventory Receivables Bank Total assets Capital and liabilities Partners' capital accounts Happy Jolly Merry Partners' current accounts Happy Jolly Merry Loan Current Liabilities Payables Total capital and liabilities Happy, Jolly and Merry Balance sheet as at 30 November 2008 $ 25,000 42,000 6,000 45,000 30,000 15,000 9,750 7,450 6,300 $ 50,000 35,000 85,000 73,000 158,000 90,000 23,500 18,000 26,500 158.000