FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 12, Problem 13QS
1.
To determine
Concept Introduction:
Liquidation of Partnership: The process in which all the assets are sold for a partnership business and the collection hence made is distributed amongst partners is referred as liquidation of partnership. In an accounting process, the liquidation of partnership begins with selling of non-cash assets and realizing the amount hence made. The profit or loss made on sale is distributed amongst partners in the income sharing ratio. If there is profit, liabilities are disbursed with that amount. Balance amount is then distributed amongst partners in mutually decided ratio.
The capital balance of each partner after the liquidation and assets and payment of creditors
2.
To determine
Concept Introduction:
Liquidation of Partnership: The process in which all the assets are sold for a partnership business and the collection hence made is distributed amongst partners is referred as liquidation of partnership. In an accounting process, the liquidation of partnership begins with selling of non-cash assets and realizing the amount hence made. The profit or loss made on sale is distributed amongst partners in the income sharing ratio. If there is profit, liabilities are disbursed with that amount. Balance amount is then distributed amongst partners in mutually decided ratio.
To prepare: The
3.
To determine
Concept Introduction:
Liquidation of Partnership: The process in which all the assets are sold for a partnership business and the collection hence made is distributed amongst partners is referred as liquidation of partnership. In an accounting process, the liquidation of partnership begins with selling of non-cash assets and realizing the amount hence made. The profit or loss made on sale is distributed amongst partners in the income sharing ratio. If there is profit, liabilities are disbursed with that amount. Balance amount is then distributed amongst partners in mutually decided ratio.
To prepare: The journal entries on May 31 to record the (a) transfer of deficit from the deficient partner to other partners and (b) final disbursement of cash to partners.
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H
Required: Prepare the statement of liquidation..
Vic, Victor and Vincent are partners in Valentine partnership. They share profits and
losses equally. Their financial position prior to liquidation follows:
Lump-sum Liquidation
Partnership is insolvent and partner/s are personally insolvent.
Exercise 3.
Valentine Partnership
Statement of Financial Position
As at August 31, 20xx
Assets
Liabilities and Capital
P 80,000
800,000
Liabilities
Cash
Non-cash Assets
P 480,000
40,000
Vic, Capital
Victor, Capital
Vincent, Capital
Total Liabilities and Capital P 880.000
120,000
240.000
Total Assets
P 880,000
The personal assets and liabilities of the partners, beside their equities in the
partnership, are as follows:
Personal Assets
Personal Liabilities
Partners
P800,000
P500,000 :
P 40,000
P300,000
P500,000
Vic
Victor
P140,000
Vincent
Solvent partners are going to invest when cash is needed. Non-cash assets are sold
for P425,000. Liabilities in the amount of P480,000 are paid.
[The following information applies to the questions displayed below]
The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the
partnership when their capital balances are as follows: Field, $130,500, Brown, $166,100; and Snow, $155,800. On May 31,
the liquidation resulted in a loss of $407,400.
QS 12-13 (Algo) Part 3
3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries (a) to transfer the deficit to the
other partners and (b) to record the final disbursement of cash to the partners.
View transaction list
Journal entry worksheet
< 1
Record transfer of Field's deficit to the other partners.
Note: Enter debits before credits
Transaction
(a)
General Journal
Debit
Credit
Chapter 12 Solutions
FUND.ACCT.PRIN.
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - QS 12-9
Liquidation of partnership
P5
The Field,...Ch. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Kay, Kat, and Kim are partners. In a liquidation,...Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1BTNCh. 12 -
BTN 12-4 Assume that you are studying for an...Ch. 12 - BTN 12-3 Access the 2017 10-K of Advanced...Ch. 12 - Prob. 4BTN
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