The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS LIABILITIES & CAPITAL Cash 50,000 Liabilities 70,000 Other Assets 140,000 Loan - January 20,000 Loan - July 10,000 January, Capital (50%) 30,000 June, Capital (30%) 50,000 July, Capital (20%) 30,000 Partner January and June are personally insolvent. The percentages in parenthesis are their profit or 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.Question: How much cash should January, June and July receive? Situation 2: If non cash assets are sold for P50,000 and all liabilities are paid and liquidation expense of P5,000 are also paid.Question: How much cash should January, June and July receive? Situation 3: If July received a total of P80,000:Question: (1) How much cash should January receive? Situation 3: If July received a total of P80,000:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 4: If non cash assets are sold for P40,000 and all liabilities are paid and liquidation expense of P10,000 are also paid.Question: How much should June receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (1) How much cash should July receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (3) How much is the total proceeds on sale of other assets?

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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The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS LIABILITIES & CAPITAL Cash 50,000 Liabilities 70,000 Other Assets 140,000 Loan - January 20,000 Loan - July 10,000 January, Capital (50%) 30,000 June, Capital (30%) 50,000 July, Capital (20%) 30,000 Partner January and June are personally insolvent. The percentages in parenthesis are their profit or 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.Question: How much cash should January, June and July receive? Situation 2: If non cash assets are sold for P50,000 and all liabilities are paid and liquidation expense of P5,000 are also paid.Question: How much cash should January, June and July receive? Situation 3: If July received a total of P80,000:Question: (1) How much cash should January receive? Situation 3: If July received a total of P80,000:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 4: If non cash assets are sold for P40,000 and all liabilities are paid and liquidation expense of P10,000 are also paid.Question: How much should June receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (1) How much cash should July receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (3) How much is the total proceeds on sale of other assets?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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