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

See similar textbooks

Similar questions

Final Cash Distribution to Partners
please answer do not image format
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
A-7