Problem 5.Partners Limin, Parducho and Calingasan share profits and losses in the ration of 5:3:2. The partners decidedto liquidate the partnership. Their statement of financial position prior to liquidation is:AssetsLiabilities & CapitalCashP 400,000 LiabilitiesP 600,000Other Assets2,100,000 Limin, Loan80,000400,000Limin, CapitalParducho, CapitalCalingasan, CapitalP2,500,000 Total Liabilities & Capital P2,500,000720,000700.000Total AssetsThe partnership is to be liquidated by installment. The first sale of non-cash assets costing P1,200,000 realizedP900,000. Llquidation expenses paid amounted to P20,000. The second sale of non-cash assets costingP900,000 realized P500,000. Liquidation expenses paid amounted to P15,000. The final sale of the remainingnon-cash realized P100,000.Required:A. Prepare a Cash Priority ProgramB. Prepare a Statement of Liquidation based on the Cash Priority Program

According to the liquidation statements, the net realizable value from the sale of assets will be…

Problem 5. Partners Limin, Parducho and Calingasan share profits and losses in the ration of 5:3:2. The partners decided to liquidate the partnership. Their statement of financial position prior to liquidation is: Assets Liabilities & Capital P 400,000 2,100,000 P 600,000 Cash Liabilities Other Assets Limin, Loan 80,000 Limin, Capital Parducho, Capital Calingasan, Capital Total Liabilities & Capital P2.500.000 400,000 720,000 700.000 Total Assets P2,500.000 The partnership is to be liquidated by installment. The first sale of non-cash assets costing P1,200,000 realized P900,000. Llquidation expenses paid amounted to P20,000. The second sale of non-cash assets costing P900,000 realized P500,000. Liquidation expenses paid amounted to P15,000. The final sale of the remaining non-cash realized P100,000. Required: A. Prepare a Cash Priority Program B. Prepare a Statement of Liquidation based on the Cash Priority Program

Problem 5. Partners Limin, Parducho and Calingasan share profits and losses in the ration of 5:3:2. The partners decided to liquidate the partnership. Their statement of financial position prior to liquidation is: Assets Liabilities & Capital P 400,000 2,100,000 P 600,000 Cash Liabilities Other Assets Limin, Loan 80,000 Limin, Capital Parducho, Capital Calingasan, Capital Total Liabilities & Capital P2.500.000 400,000 720,000 700.000 Total Assets P2,500.000 The partnership is to be liquidated by installment. The first sale of non-cash assets costing P1,200,000 realized P900,000. Llquidation expenses paid amounted to P20,000. The second sale of non-cash assets costing P900,000 realized P500,000. Liquidation expenses paid amounted to P15,000. The final sale of the remaining non-cash realized P100,000. Required: A. Prepare a Cash Priority Program B. Prepare a Statement of Liquidation based on the Cash Priority Program

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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В. Pisces, Leo and Gemini share profits in the ration of 5:3:2, respectively. Capital and loan balances just prior to partnership liquidation are: САРITAL LOANS Pisces P 120,000 Pisces P 45,000 Leo 90,000 Leo 30,000 Gemini 40,000 Gemini 13,000 Non-cash assets are sold, and cash is distributed to partners in monthly installments during the course of liquidation as follows: January – P 15,000; February - P 40,000; March - P 90,000; April – P 30,000 (final distribution) Required: a) Prepare a program to show how cash should be distributed during the entire course of liquidation, b) Using the program developed in (a), prepare schedules summarizing the payments to be made to partners at the end of each month. c) Prepare a statement of liquidation to summarize the course of liquidation.
Final Cash Distribution to Partners
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Problem 3 low is the balance sheet of Gold Ace Company immediately prior to the liquidation of the partnership: P500,000.00 1,900,000.00 P2,400,000.00 Cash Non-cash assets Total P1,100,000.00 Liabilities Capital Salazar Nenubla Gomez 480,000 00 320,000.00 500,000.00 P2,400,000.00 Total The partners share profits and losses in the ratio 50%, 30%, 20%. It is assumed that Salazar and Gomez have personal assets which are sufficient in amount to "make good" capital debit balances which may be created during the liquidation process. The non-cash assets of the partnership are realized in the amount of P600,000,00. Give the schedule of liquidation and the corresponding journal entries assuming a) nothing is realized from the three partners, b) capital deficiencies are paid.
Partners Shuka, Towyo&Fatis, who share profit and loss in the ratio of 3:5:2, respectively have decided to liquidate their partnership. The statement of financial position of the partnership at the time of Cash 86,300 Accoutns Payable 58,000 other assets 303,700 loans from Towyo 15,500 Shuka, Capital 93,000 Towyo, Capital 95,000 Fatis. Capital 128,500. The partnership is to prepare an instalment distribution schedule showing how cash would be distributed to partners as assets are realized. assuming Partners Shuka, Towyo and Fatis share Profit and Loss equally, the maximum absorbable loss for Shuka would be? assuming Partners Shuka, Towyo and Fatis share Profit and Loss equally, the maximum absorbable loss for Towyo would be? assuming Partners Shuka, Towyo and Fatis share Profit and Loss equally, the maximum absorbable loss for Fatis would be
24. Show solution in good accounting form
Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
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