Problem VThe balance sheet for the partnership of JJ, CC and TT, whose shares of profit and losses are 40,50, and 10percent is as follows:Cash...............Inventory .......................P 50,0000360,000Accounts PayableJJ, CapitalCC, CapitalTT, Capital......Total liabilities and capitalJJссITa. P 56,000; P 70,000; P 14,000b.P 16,000; P 20,000; P 4,000Total assets.... P 410,000The partnership will be liquidated in installments. As cash becomes available, it will be distributed to partners.If inventory costing P200,000 is sold for P140,000, how much cash should be distributed to each partners atthis time?JJссC. P 32,000; Po;d. P 20,000; Po;P 150,000. 160,000TTP 8,000P 20,00045,00055,000P 410,000

Partnership means the agreement between the two or more person to do the business together and share…

Problem V The balance sheet for the partnership of JJ, CC and TT, whose shares of profit and losses are 40,50, and 10 percent is as follows: Cash............. P 50,0000 360,000 Inventory..... Accounts Payable.... JJ, Capital....... CC, Capital... }} CC IT a. P 56,000; P 70,000; P 14,000 b. P 16,000; P 20,000; P 4,000 TT, Capital Total liabilities and capital. ....... P 150,000 160,000 45,000 CC C. P 32,000; Po; d. P20,000; Po; ********* Total assets.... P 410,000 The partnership will be liquidated in installments. As cash becomes available, it will be distributed to partners. If inventory costing P200,000 is sold for P140,000, how much cash should be distributed to each partners at this time? 55,000 P 410,000 II P 8,000 P 20,000

Problem V The balance sheet for the partnership of JJ, CC and TT, whose shares of profit and losses are 40,50, and 10 percent is as follows: Cash............. P 50,0000 360,000 Inventory..... Accounts Payable.... JJ, Capital....... CC, Capital... }} CC IT a. P 56,000; P 70,000; P 14,000 b. P 16,000; P 20,000; P 4,000 TT, Capital Total liabilities and capital. ....... P 150,000 160,000 45,000 CC C. P 32,000; Po; d. P20,000; Po; ********* Total assets.... P 410,000 The partnership will be liquidated in installments. As cash becomes available, it will be distributed to partners. If inventory costing P200,000 is sold for P140,000, how much cash should be distributed to each partners at this time? 55,000 P 410,000 II P 8,000 P 20,000

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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The condensed balance sheet and profit – sharing ratio of the partnership of Wenda, Wendy, and Wilma are presented below: Cash P 22,500.00 Liabilities P52,500.00 Due from Wanda 7,500.00 Due to Wilma 10,000.00 Other assets 205,000.00 Wanda, cap’l (4) 75,000.00 Wendy, cap’l (3) 50,000.00 Wilma, cap’l (3) 47,500.00 Total assets P235,000.00 Total equities P235,000.00 21. The partners agreed to liquidate and they sold all the Other assets for P150,000.00. How much of the available cash should go to Wanda? a. P45,500.00 b. P75,000.00 c. P42,500.00 d. P53,000.00 22. Refer to No. 21 above, how much will be received by Wendy in the partnership liquidation a. P41,000.00 b. P74,000.00 c. P33,500.00 d. P66,600.00
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.
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Exercise 3-2 (Division of Profit; Interest on Average Capital) Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital 120,000 1/1 Jenson, Capital 3/1 180,000 1/n 1,200,000 140,000 100,000 9/1 800,000 160,000 60,000 4/1 7/1 11/1 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.
k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
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am. 124.
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