The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share profits and losses in the ratio of 6.2.2, respectively. Cash Other assets Total assets $ 52,000 152,000 Required A Required B $ 204,000 Liabilities Ludolf, capital Sambal, capital Urad, capital Total liabilities and capital Required: a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? Complete this question by entering your answers in the tabs below. Other assats must be sold $ 38,000 72,000 72,000 22,000 $ 204,000 For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? < Required A

The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share profits and losses in the ratio of 6.2.2, respectively. Cash Other assets Total assets $ 52,000 152,000 Required A Required B $ 204,000 Liabilities Ludolf, capital Sambal, capital Urad, capital Total liabilities and capital Required: a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? Complete this question by entering your answers in the tabs below. Other assats must be sold $ 38,000 72,000 72,000 22,000 $ 204,000 For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? < Required A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share…

A: Liquidation is the process of closing a business and distributing its assets to claimants in…

Q: The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000,…

A: A gain on realization arises when an asset is sold at a price higher than its initial cost value.…

Q: Assume that, as part of liquidation proceedings, Granobfin sells its noncash assets for $510000. The…

A: Partnership is the relation between two or more person, it has the following characteristicsThey…

Q: The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share…

A: A partnership is a legally binding contract involving two or more individuals or entities to jointly…

Q: Assume the partnership income-sharing agreement calls for income to be divided with a salary of…

A: A journal entry is a record of a business sale in account. It's the first step in the account…

Q: Finn and Hart form a partnership, contributing $44,000 and $66,000, respectively. Determine their…

A: As requested to answer only Part A so we are answering only Part A.

Q: Delow is the balance sheet of Gold Ace Company immediately liquidation of the partnership:…

A: Statement of liquidation shows the net cash available to pay the creditors and the partners.

Q: 3. How much was the loss on realization? a. P 50,000. b. P 60,000. 4. How much did See receive in…

A: Given in the question: Partnership is dissolved or liquidated and the balance of the accounts after…

Q: After Non-Cash Assets have been sold and liabilities paid, the final step in the liquidation process…

A: The gains and losses are equally distributed between the partners. It indicates that A and B are…

Q: The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share…

A: Partnership:A voluntary agreement between two or more people to operate a business for profit is…

Q: The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share…

A: Loss to eliminate the capital: For Miller = 69,000 / 0.6 = 115,000 For Tyson = 69,000 / 0.2 =…

Q: Prepare a program showing how cash should be distributed if the liabilities are $15,000. B) Make the…

A: Partnership can be defined as the form of business organization, which consists of two or more…

Q: A partner receives the following in a liquidating distribution: Basis $12,000 FMV $12,000 4,000 0…

A: It is an agreement between two or more parties to conduct the business and share the profits and…

Q: d. The original partners, Der, Egan, and Oprins, agree to give Snider $10,000 of goodwill upon…

A: Effect of Admission of a Partner: Admission of a new associate is a prime occasion in apartnership…

Q: Required: The partners decide to liquidate the partnership. Forty percent of the other assets are…

A: Liquidation :Liquidation of a partnership refers to the process of winding up and settling the…

Q: The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs.…

A: An organization's operations are terminated during winding up, and any leftover assets are…

Q: The LDP Partnership is to be liquidated and you have been hired to prepare a Schedule of Cash…

A: Cash Noncash liability…

Q: The following condensed balance sheet is presented for the partnership of Der, Egan, and Oprins, who…

A: A journal entry is a method of recording transactions in the book of original entry by debiting and…

Q: The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its…

A: A. Schedule I Partner Capital balance/loss allocation The maximum loss that can be absorbed…

Q: The condensed balance sheet and profit – sharing ratio of the partnership of Wenda, Wendy, and Wilma…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Question

The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share profits and losses in the ratio of
6.2.2, respectively.
Cash
Other assets
Total assets
Required A
$ 52,000
152,000
Required
$ 204,000
Required:
a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.
b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
Complete this question by entering your answers in the tabs below.
Liabilities
Ludolf, capital
Sambal, capital
Urad, capital
Total liabilities and capital
Other assats must be sold
For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
$ 38,000
72,000
72,000
22,000
$ 204,000
< Required A
BY

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to the Partnership

VIEW

Step 2: Preparation of the partnership liquidation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Hardwick, loan Total assets $ 93,000 815,000 44,000 Beginning balances Sold assets $952,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Total liabilities and capital The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $125,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.) HARDWICK, SAUNDERS, AND FERRIS Proposed Schedule of Liquidation Cash Other Assets $ 48,000 54,000 380,000 240,000 230,000 $952,000 Accounts Payable Hardwick, Loan and Capital Saunders, Capital Ferris, Loan & Capital
Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.
Dengar
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 $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 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,…
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.
a. Prepare a profit distribution account for the year ended 31 October 2021. b. Prepare the partners' current accounts (in columnar form) for the year to 31 October 2021. c. (Note: All the figures must be rounded up to the nearest RM) note i need the answer in full format thank you