The partnership of kapos, kulang and kasia was affected by the pandemic do the partners have decided to liquidate on December 31, 2019 and gave you the following balances: Cash Outside Creditors 100,000 1,400,000 Loan due to kapos Kapos, capital Kulang, capital Kasia, capital 890,000 10,000 90,000 190,000 320,000 Non-Cash Asset The partners share profit and loss in the ratio 5:3:2, respectively. Non cash asset was sold for 1,000,000. All partners are solvent Answer the following: Gain/Loss on Realization Gain/Loss absorbed by Kapos Gain/Loss absorbed by Kulang

The partnership of kapos, kulang and kasia was affected by the pandemic do the partners have decided to liquidate on December 31, 2019 and gave you the following balances: Cash Outside Creditors 100,000 1,400,000 Loan due to kapos Kapos, capital Kulang, capital Kasia, capital 890,000 10,000 90,000 190,000 320,000 Non-Cash Asset The partners share profit and loss in the ratio 5:3:2, respectively. Non cash asset was sold for 1,000,000. All partners are solvent Answer the following: Gain/Loss on Realization Gain/Loss absorbed by Kapos Gain/Loss absorbed by Kulang

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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Required: Prepare a statement of Partnership Liquidation
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The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below depicts their financial position before liquidation: Cash Loans to Tank Other non-cash assets P 30,000 70,000 600,000 The other non-cash assets were sold at P400,000. 1. The excess cash distributed to Kylie is P40,000 A. True B. False Accounts payables P Kylie, loan Kylie, capital (40%) Bambo, capital (20%) Tank, capital (40%) 2. The excess cash distributed to Tank is P110,000 A. True B. False 3. The ending balance of non-cash assets after liquidation is P200,000 A. True B. False 280,000 30,000 90,000 150,000 150,000
RR, SS, and TT decided to dissolve the partnership on November 30, 2015. Their capital balances and profit ratio on this date, follow: Capital Bal. P & L RR P 50,000 40% 60,000 20,000 30% TT 30% The net income from January 1 to November 30, 2015 is P 44,000. Also, on this date, cash and liabilities are P 40,000 and P 90,000 respectively. For RR to receive P 55,200 in full settlement of his interest in the firm, how much must be realized from the sale of the firm's non-cash assets? а. Р 196,000 b. Р 177,000 P 193,000 d. P 187,000
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?
A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments: Current Assets Non-current Assets Total Liabilities ● A 617,500 848,000 150,000 B 672,500 970,000 178,000 They agreed to set up P5,000 each as uncollectible accounts on their accounts receivable. They also found out that their Non-current assets (all depreciable assets) were under-depreciated by P80,000 each. The partners agreed to equalize their capital balance upon formation. Compute the total capital of the partnership.
The costs incurred in the manufacture of 75,000 units of a product are: Direct materials $80,000 Direct labour $15,000 Variable overheads $32,000 Fixed overheads $130,000 If output increases by 15%, what will be the effect, if any, on the variable cost per unit? Show solution
On Jan 10, 2023, partners Kong, Nang and Dee of KND Partnership decided to terminate the operation of their business because of the huge amount of loss incurred in 2022. The business was heavily affec the pandemic due to Covid-19. Kong, Nang and Dee share profits and losses in the ratio 4:33, respectively. All partners are personally solvent, and Nang is a limited partner The Statement of Financial Posit KND Partnership as of December 31, 2022 follows: Assets: Liabilities & Partners' Equity Cash 256,000 Accounts Payable 900.000 Accounts Receivable Due to T. Nang 60,000 30,000 Allow. For Bad Debts Due to C. Dee (6,000) 20,000 Due from F. Kong F. Kong, Capital 20,000 140.000 Equipment T Nang, Capital 101,200 1.200.000 Accumulated Depreciation, Equipment C. Dee (200,000) 138,800 Total Assets 1,330.000 Total Liabilities & Partner's Equity 1,330,000 The customers accounts are no longer collectible and the equipment were sold at a loss of P400,000. The loss on realization of assets charged…
On December 31, 2018, the unadjusted Statement of Financial Position of LAV Partnership shows the following data with profit and loss sharing agreement of 2:3:5. Total Assets 100,000 Total Liabilities 40,000 Lorna 10,000 Amy 20,000 Veronica 30,000 On December 31, 2018, Lorna decided to retire from the partnership. However, before the distribution of cash to Lorna, the following data errors were discovered during the pre-retirement audit:• During the year, machinery was over depreciated by $15,000.• The net income for the year is overstated by $5,000.After the adjustment, Lorna received $15,000 for her capital interest.How much is the capital of Amy after Lorna’s retirement? A. 27,500 B. 23,000 C. 21,875 D. 20,000
The partnership of kapos, kulang and kasia was affected by the pandemic do the partners have decided to liquidate on December 31, 2019 and gave you the following balances: Cash 100,000 Outside Creditors 890,000 Non-Cash Asset 1,400,000 Loan due to kapos 10,000 Kapos, capital 90,000 Kulang, capital 190,000 Kasia, capital 320,000 The partners share profit and loss in the ratio 5:3:2, respectively. Non cash asset was sold for 1,000,000. All partners are solvent Answer the following: Gain/Loss absorbed by Kasia Capital balance of Kapos after sale of Non – Cash Asset Capital balance of Kulang after sale of Non – Cash Asset Additional Investment by Kapos Final Settlement to Kapos Final Settlement to Kulang Final Settlement to Kasia
ABC Partnership was unsuccessful and is beginning liquidation. All partners share profits and losses equally. Current Capital balances are as follows: Partner A: 49000 Partner B: 33000 Partner C: -6000 The partnership has a current cash balance of 21000 and noncash assets of 91000. The partnership expects to receive 80000 from the sale of the non cash assets. Both Partner A and B are personally solvent, but Partner C is not. The estimate of cash disbursed to each partner will be: Partner A: Partner B: Partner C: 0
AHRI, AKALI and JINX are partners sharing profits and losses in the ratio of 3:2:1,respectively. On June 30, 2021 AHRI decided to withdraw from the partnership as he was offered a better opportunity outside the partnership. On the day after dividing profit for the year ended June 30, 2021, partners have a capital balances as follows: AHRI –P346,000AKALI– P213,000JINX– P133,000It was agreed that AHRI is to be paid P310,000 and that assets are fairly valued. What would be the capital balance of AKALI after the withdrawal of AHRI?