After operating for 5 years, the books of A and B showed the following balances with equal distribution in profit: Assets (Cash and Non-cash assets) 130,000 A, Capital B, Capital If liquidation takes place at this point and the net assets are realized at P150,000. Profits and losses are shared equally. Compute the amount of cash distributed to partner B in the final settlement of their capital account. 60,000 70,000

After operating for 5 years, the books of A and B showed the following balances with equal distribution in profit: Assets (Cash and Non-cash assets) 130,000 A, Capital B, Capital If liquidation takes place at this point and the net assets are realized at P150,000. Profits and losses are shared equally. Compute the amount of cash distributed to partner B in the final settlement of their capital account. 60,000 70,000

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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After paying all their liabilities, Mark, Lark, and Park had the following balances: Partner Capital Loans P&L ratio Mark P102,960 P90,000 12/25 Lark 89,040 30,000 8/25 Park 68,100 39,900 5/25 Cash available for distribution amounts to P37,800, remaining assets of P382,200 will be realized piecemeal in the next month. How much of the P37,800 cash should Park receive? P30,600 b. P7,200 c. P7,560 d. Zero
X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:
Item Nos. 6 and 7 are based on the following information: The following are the capital balances and profit and loss ratios of the partners Mona, Nona, and Ona: Capital Profit & Loss Ratio Mona- P 20,000 20% Nona 10,000 30% Ona- 5,000 50% Total-- P 35,000 100% After realization of the assets and payment of liabilities, the cash available for distribution was P 18,000. Any capital deficiency is uncollectible. 6. What was the loss on realization? a. P 15,000. C. P 17,000. b. P 16,000. d. P 18,000. 7. How should the cash be distributed? b. a. Mona, P 3,600; Nona, P 5,400; and Ona, P 4,000. Mona, P 6,000; Nona, P 6,000; and Ona, P 6,000. c. Mona, P 15,200; Nona, P 2,800; and Ona, P O. d. Mona, P 18,000; Nona, P 0; and Ona, PO.
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AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AMA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAAs personally insolvent. The gain or loss on realization is: a. -125,000b. -625,000c. 125,000d. 625,00
AAA, BBB, and CCC are partners sharing profits and losses in the ratio of 5:3:2. During the year their investments and withdrawals are as follows: Investment of AAA, BBB and CCC for P200,000, P175,000 and P375,000 respectively. Withdrawals of AAA, BBB and CCC amounting to P125,000, P62,500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. AAA is personally insolvent. The gain or loss on realization is: 125,000 -125,000 -625,000 625,000
After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash-P141,000: Accounts Payable - P 96,000; Sun, Loan - P 45,000: Sun, Capital -(P21.000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable?
After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash - P141,000; Accounts Payable - P 96,000; Sun, Loan - P 45,000; Sun, Capital -(P21,000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable? how much is the final settlement to Star?
Item Nos. 8 and 9 are based on the following information: Before the realization of assets and payment of liabilities, the capital balances of A, B, and C are P 12,000, P 18,000, and P 20,000, respectively. They share profits in the ratio of 4:1:5. 8. If B received P 17,200 during the liquidation, how much did A receive? a. P 8,000. C. P 9,000. b. P 8,800. d. P 12,000. 9. How much cash was distributed to the partners? a. P 40,000. C. P 48,000. 1 b. P 42,000. d. P 50,000. 1
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depreciation was< 35,000, was SUlo for 12,000. 11. Prem, Kumar and Arti were partners in a firm sharing profits in the ratio of 5:3:2 respectively. On 31 March 2020, their balance sheet was as follows: Balance Sheet as at 31st March 2020 Liabilities (2) Assets (2) Capitals: Prem 25.000 Building Plant & Machinery 30,000 20,000 20,000 8,000 2,000 10,000 15.000 10,000 10,000 5,000 25,000 Kumar Investment Arti Debtors General Reserve Stock Investment Fluctuation Reserve Cash Sundry Creditors 90,000 90.000 On this date, Kumar retired. The terms of retirement were: (a) Kumar sold his share of goodwill to Prem for 8,000 and to Arti for 4,000. (b) Stock was found to be undervalued by 1,000 and building by 7,000. (c) Investments were sold for 11,000. (d) There was an unrecorded creditor of 7,000. (e) An amount of 30,000 was paid to Kumar in cash. The balance amount of Kumar was settled by accepting a bill of exchange in favour of Kumar. Prepare Revaluation Account, partners' capital account and…
EXERCISE 8-10. Problem Solving 2: Gain or loss on realization of non-cash assets; capital deficiency absorption. Joshua, Daniel, and Martha were partners sharing profit and losses in the ratio of 1:2:1, respectively. On March 15, 2019, they decided to liquidate. Capital balances of Joshua, Daniel, and Martha were P215,000, P75,000, and P85,000, respectively. Liabilities amounting to P100,000 had yet to be settled. Total assets, inclusive of P35,000 cash, totaled P475,000. All non-cash assets were sold for only 30% of their book values. Liquidating expenses of P5,000 were also incurred. It was also determined that all partners, except Daniel, were solvent. REQUIRED: 1. How much was the gain or loss on non-cash asset realization? 2. How much cash should Martha infuse to satisfy the liquidation process of the partnership?