ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 16, Problem 16.4E
To determine
Lump-sum liquidations: liquidation of partnership in which all assets are converted into cash within a short time, creditors are paid, and a single lump-sum payment is made to the partners for their capital interests. Partnership may experiences losses on disposal of assets, because it has to make offer below the normal selling price to encourage immediate sales. The partnership attempts to collect receivable has to offer large cash discounts for prompt payments. Any
Requirement 1
The preparation of statement of partnership realization and liquidation.
To determine
Lump-sum liquidations: liquidation of partnership in which all assets are converted into cash within a short time, creditors are paid, and a single lump-sum payment is made to the partners for their capital interests. Partnership may experiences losses on disposal of assets, because it has to make offer below the normal selling price to encourage immediate sales. The partnership attempts to collect receivable has to offer large cash discounts for prompt payments. Any goodwill on the partnership books is generally written off when the partnership begins liquidation because it is no longer a going concern.
Requirement 2
The entry to account the liquidation of BG company.
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Given information for question below:
MAQHUZE WELDERS had the following balances when they commenced
a simultenous liquidation of the partnership:
432 000
Welding equipment (cost)..
Welding equipment (accumulated depreciation)..
Trade receivables..
145 800
70 200
Trade payables..
32 400
The following transactions took place as part of the liquidation:
1. Welding equipment were sold for..
2. Debtors settled their accounts in full
3. On settlement, the creditors granted a settlement discount of...
3. Liquidation costs amounted to...
216000
1700
27000
. *...
QUESTION 1
Which one of the following alternatives represents the correct net profit (or loss)
made on the simultaneous liquidation?
A. 68 500
B. 74 500
C. 89 400
D. 76 200
A balance sheet for the partnership of A, B,
and C, who share profits 2:1:1, shows the
following balances just before liquidation:
Cash: P48,000
Other assets: 238,000
Liabilities: 80,000
A, Capital: 88,000
B, Capital: 62,000
C, Capital: 56,000
On the first month of liquidation, certain non-
cash assets were sold resulting to a loss of
P23,000. Liquidation expenses of P4,000
were paid, and additional liquidation expenses
of P3,200 are withheld to anticipate payment
before liquidation is completed. After
creditors were paid, partner B received
P13,000 on the initial installment.
Determine total payment to partners on the
initial installment.
A balance sheet for the partnership of A, B, and C, who
share profits 2:1:1, shows the following balances just
before liquidation:
Cash: P48,000
Other assets: 238,000
Liabilities: 80,000
A, Capital: 88,000
B, Capital: 62,000
C, Capital: 56,000
On the first month of liquidation, certain non-cash assets
were sold resulting to a loss of P23,000. Liquidation
expenses of P4,000 were paid, and additional liquidation
expenses of P3,200 are withheld to anticipate payment
before liquidation is completed. After creditors were paid,
partner B received P13,000 on the initial installment.
Determine the total book value of the non-cash assets on
the first month.
Chapter 16 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11.1AECh. 16 - Prob. 16.11.2AECh. 16 - Prob. 16.11.3AECh. 16 - Prob. 16.11.4AECh. 16 - Prob. 16.11.5AECh. 16 - Prob. 16.11.6AECh. 16 - Prob. 16.11.7AECh. 16 - Prob. 16.11.8AECh. 16 - Prob. 16.11.9AECh. 16 - Prob. 16.11.10AECh. 16 - Prob. 16.11.11AECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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