The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS Cash 50,000 Other Assets 140,000 Loan — July 10,000 Total Assets 200,000 LIABILITIES & CAPITAL Liabilites 70,000 Loan- January 20,000 January,Capital (50%) 30,000 June,Capital (30%) 50,000 July,Capital (20%) 30,000 Total Liabilities & Capital 200,000 Partners January and June are personally insolvent. The percentages in parenthesis are their profit and loss ratio. Situation 1:If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid: How much cash should January receive? 50,000; 50,000; 20,000 52,000; 51,000; 21,000 51,000; 52,000;20,000 51,000; 52,000; 21,000 Situation 2:If non cash assets are sold for P 50,000, liquidation expense of P5,000 and all liabilities are paid: How much cash should January, June, July receive? 50,000; 50,000; 20,000 2,500; 21,5000, 1,000 1,000; 2,500; 21,500 1,500; 21,500; 2,000 Situation 3:If non cash assets are sold for P40,000, liquidation expense of P10,000 and all liabilities are paid How much cash should June receive P 0 P4.000 P 10,000 P 14,000
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.
The
ASSETS
Cash 50,000
Other Assets 140,000
Loan — July 10,000
Total Assets 200,000
LIABILITIES & CAPITAL
Liabilites 70,000
Loan- January 20,000
January,Capital (50%) 30,000
June,Capital (30%) 50,000
July,Capital (20%) 30,000
Total Liabilities & Capital 200,000
Partners January and June are personally insolvent. The percentages in parenthesis are their
Situation 1:If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid:
- How much cash should January receive?
- 50,000; 50,000; 20,000
- 52,000; 51,000; 21,000
- 51,000; 52,000;20,000
- 51,000; 52,000; 21,000
Situation 2:If non cash assets are sold for P 50,000, liquidation expense of P5,000 and all liabilities are paid:
- How much cash should January, June, July receive?
- 50,000; 50,000; 20,000
- 2,500; 21,5000, 1,000
- 1,000; 2,500; 21,500
- 1,500; 21,500; 2,000
Situation 3:If non cash assets are sold for P40,000, liquidation expense of P10,000 and all liabilities are paid
- How much cash should June receive
- P 0
- P4.000
- P 10,000
- P 14,000
Situation 4:If July received a total of P 8,000:
4.How much cash should January receive?
- 12,000
- 20,000
- 32,000
- 50,000
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