The A, B and C partnership has total assets of P260,000. Capital balances for partners A, B, and P50,000, respectively. The profit/loss percentages for partners A, B, and C are 30%, 40%, and 3 the liabilities is a P9,000 loan payable to A. The partnership has elected to liquidate over the next several months. Liquidation expenses are Assuming assets with a book value of P80,000 were sold for P60,000 and that P160,000 cash available cash be distributed?

The A, B and C partnership has total assets of P260,000. Capital balances for partners A, B, and P50,000, respectively. The profit/loss percentages for partners A, B, and C are 30%, 40%, and 3 the liabilities is a P9,000 loan payable to A. The partnership has elected to liquidate over the next several months. Liquidation expenses are Assuming assets with a book value of P80,000 were sold for P60,000 and that P160,000 cash available cash be distributed?

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

Victory Worship Partnership has the following account balances before liquidation (see attached photo):During December, some non-cash assets were sold for a loss of P1,845. Liquidation expenses of P7,000 were paid and additional expenses amounting to P3,600 were expected to be incurred through the following months of liquidating the partnership. Liabilities to outsiders amounting to P35,000 were paid. What is the book value of non-cash assets sold for Co to receive P22,222? A. 83,355 B. 85,200 C. 95,000 D. 93,155
kk.
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.
A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: Berzina, capital (40%) Horvath, capital (30%) Markov, capital (10%) Petronis, capital (20%) $ 59,000 39,000 34,000 34,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Berzina 147,500 Horvath Markov Petronis
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 61,000 Liabilities $ 55,000 Noncash assets 329,000 Drysdale, loan 42,500 Drysdale, capital (50%) 107,500 Koufax, capital (30%) 97,500 Marichal, capital (20%) 87,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $99,000 are sold for $72,500. How is the available cash to be divided?
As of December 31, 2020, the books of Abad, Sison, and Dario Partnership showed capital balances of Abad- 80,000; Sison - 50000 and Dario - 10,000. The partners’ profit and loss ratio was 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for 74,000. After settlement of all liabilities amounting to 34,000, they still have 56,000 cash left for distribution. How much is the loss on realization?
Kershaw, Buehler, and Bauer are partners and agree to share profit and loss in the ratio of 30/30/40. The partners have agreed to liquidate, liquidation expenses will total $28,000. The following are the balances prior to liquidation: Cash, $100,000; Noncash assets, $700,000; Liabilities $354,000; Kershaw Capital, $200,000; Buehler Capital, $144,000 and Bauer Capital, $102,000. Assume actual liquidation expenses are $20,000 and noncash assets sold for $500,000 using an excel spreadsheet prepare a statement of partnership liquidation.
On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cash on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
Light, Day and Fire of Sunshine Partnership with a profit and loss sharing ratio of 25%, 15% and 60% respectivelyhas the following account balances:>DUring June, some non cash assets were sold that resulted to a loss of P20,000. Liquidation expenses of P31,000 were paid and additional expenses amounting to P24,000 were expected to be incurred through the following month of liquidating the partnership. > Liabilities to outsiders amounting to P79,000 were paid. > For Fire to receive P31,000 on the first distribution of cash, How much is the book value of the unsold Non-cash assets ?
At year-end, the Queen City partnership has the following capital balances: $ 340,000 320,000 Isabella, Capital Catherine, Capital Elizabeth, Capital Victoria, Capital 290,000 280,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Elizabeth decides to leave the partnership and is paid $320,000 from the business based on the original contractual agreement. Required: The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws. Isabella's capital before withdrawal of Elizabeth Isabella's share of goodwill recognition Isabella's capital balance after withdrawal of Elizabeth $ 0
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 37,000 Liabilities $ 49,000 Noncash assets 209,000 Drysdale, loan 12,500 Drysdale, capital (50%) 71,500 Koufax, capital (30%) 61,500 Marichal, capital (20%) 51,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?