The condensed balance sheet of Alex, Jay, and John as of March 31, 2006 follows:P 28,000265,00043.CashLiabilitiesP 48,00095,00080,00070,000P 293.000Other assetsAlex, capitalJay, capitalJohn, capitalTotalTotalP293,000The income and loss ratio is 50:25:25, respectively. The partners voted to dissolve theirpartnership and liquidate by selling other assets in installments. P70,000 was realized on the firstcash sale of other assets with a book value of P150.000, After settlement with creditors, all cashavailable was distributed to the partners. How much cash was received by John?P10,50020,00021,25032,500aPartners Arce, Bello and Cruz share profits and losses in the ration of 3:2:1. At the end of a veryunprofitable year, they decided to liquidate the firm. The partner's capital account balances at thistime are as follows: P 24, 000; P 27,000; P 17,500.The liabilities accumulate to P32,000, including a loan of P10,000 from Arce. The cash balance isP6,000. All the partners are personally solvent. The partners plan to sell the assets in installment.If Bello received P2, 000 from the first distribution of cash, how much did Arce and Cruz receive atthat time?44.P 2,000P 500P 750P 500РОb.P2,000РОd PO45.The accounts of the partnership of Erwin, Ralph and Mon at the end of its fiscal year onSeptember 30, 2013 are as follows:P 12,000124,0005,0009,000CashOther assetsLoan from MonErwin, capital (30%)Ralph, capital (50%)Mon, capital (20%)P 10,00045,00030,00015,000Loan to RalphLoan to ErwinLiabilities50,000If Mon received P9,000 on the first distribution of cash, the realized from the initial sale of assetswasa. 59,000b. 65,000C. 60,500d. 71,00046.An ordinary shareholder does not possess which of the following?

Liquidation means where the company affair has been closed and payment is made to the outside…

The condensed balance sheet of Alex, Jay, and John as of March 31, 2006 follows: P 28,000 265,000 43. Cash Other assets Liabilities Alex, capital Jay, capital John, capital Total P 48,000 95,000 80,000 70,000 P 293,000 Total P293,000 The income and loss ratio is 50:25:25, respectively. The partners voted to dissolve their partnership and liquidate by selling other assets in installments. P70,000 was realized on the first cash sale of other assets with a book value of P150,000. After settlement with creditors, all cash available was distributed to the partners. How much cash was received by John? a P10,500 by 20,000 21,250 32,500

The condensed balance sheet of Alex, Jay, and John as of March 31, 2006 follows: P 28,000 265,000 43. Cash Other assets Liabilities Alex, capital Jay, capital John, capital Total P 48,000 95,000 80,000 70,000 P 293,000 Total P293,000 The income and loss ratio is 50:25:25, respectively. The partners voted to dissolve their partnership and liquidate by selling other assets in installments. P70,000 was realized on the first cash sale of other assets with a book value of P150,000. After settlement with creditors, all cash available was distributed to the partners. How much cash was received by John? a P10,500 by 20,000 21,250 32,500

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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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

The condensed balance sheet of Alex, Jay, and John as of March 31, 2006 follows:
P 28,000
265,000
43.
Cash
Liabilities
P 48,000
95,000
80,000
70,000
P 293.000
Other assets
Alex, capital
Jay, capital
John, capital
Total
Total
P293,000
The income and loss ratio is 50:25:25, respectively. The partners voted to dissolve their
partnership and liquidate by selling other assets in installments. P70,000 was realized on the first
cash sale of other assets with a book value of P150.000, After settlement with creditors, all cash
available was distributed to the partners. How much cash was received by John?
P10,500
20,000
21,250
32,500
a
Partners Arce, Bello and Cruz share profits and losses in the ration of 3:2:1. At the end of a very
unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this
time are as follows: P 24, 000; P 27,000; P 17,500.
The liabilities accumulate to P32,000, including a loan of P10,000 from Arce. The cash balance is
P6,000. All the partners are personally solvent. The partners plan to sell the assets in installment.
If Bello received P2, 000 from the first distribution of cash, how much did Arce and Cruz receive at
that time?
44.
P 2,000
P 500
P 750
P 500
РО
b.
P2,000
РО
d PO
45.
The accounts of the partnership of Erwin, Ralph and Mon at the end of its fiscal year on
September 30, 2013 are as follows:
P 12,000
124,000
5,000
9,000
Cash
Other assets
Loan from Mon
Erwin, capital (30%)
Ralph, capital (50%)
Mon, capital (20%)
P 10,000
45,000
30,000
15,000
Loan to Ralph
Loan to Erwin
Liabilities
50,000
If Mon received P9,000 on the first distribution of cash, the realized from the initial sale of assets
was
a. 59,000
b. 65,000
C. 60,500
d. 71,000
46.
An ordinary shareholder does not possess which of the following?

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