On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash – P100,000
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On December 31, 2018, A, B, and C decided to liquidate their
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- On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash -P100,000 Loan to B -P25,000 Other assets -P1,075,000 Liabilities to outsiders -P603,000 Due to C -P32,000 A, Capital -P216,000 B, Capital -P187,000 C, Capital -P162,000 A, B, and C share profits and losses in the ratio of 4:4:2, respectively. The partnership was able to sell all the other assets for P1,120,000 and paid liquidation expenses of P10,000. A How much cash should A receive?A. After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilitites 4. Distribution of cash to the partnersThe statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2016 before liquidation is as follows: Assets Liabilities & Capital P 50,000 550,000 Cash Liabilities 'P 200,000 Other Assets Paraiso, capital Ligeralde, capital Total Liabilities & Capital 225,000 P 600,000 175,000 P 600,000 Total Assets Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000, creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225,000. REQUIRED: PREPARE A STATEMENT OF LIQUIDATION USING CASH PRIORITY PROGRAM.
- A, drawing (debit balance) P 24,000 A, capital P 123,000 B, drawing (debit balance) 9,000 B, capital 100,500 C, loan 30,000 C, capital 108,000 Total assets amounted to P 478,500, including P 52,500 cash, and liabilities totaled P 150,000. The partnership was liquidated on December 31, 2020, and B received P 83,250 cash pursuant to the liquidation. A, B, and C share net income and losses in a 5:3:2 ratio respectively. How much should A receive upon liquidation of the partnership?After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Distribution of cash to the partnersAfter several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilities
- As of December 31, 2021 (full year), A, B and C Partnership has the following data below before liquidation: Cash Noncash Accounts Payable A, Loan A, Capital B, Capital C, Capital 10,000 100,000 5,000 5,000 25,000 35,000 40,000 Assuming that non-cash were sold for P10,000. The profits and losses are shared equally. Compute the cash received by C for the final settlement of his capital balance.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: P48,000Other assets: 238,000Liabilities: 80,000A, Capital: 88,000B, Capital: 62,000C, 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.On February 28, 2023, the partners Anna, Juan. Berto authorized the liquidation of their partnership. The statement of financial position is as follows: AAA Statement of Financial Position February 28, 2023 Cash Non-cash assets Total Assets P10,000 Accounts Payable 290,000 Ana, Capital Required: a. Prepare the Cash Priority Program b. Prepare the journal entries for March 1, and March 4, 2023 P300,000 Juau, Capital Berto, Capital Total Liabilities and Capital P100,000 100,000 20,000 80,000 P300,000 Additional Informatic 1. The partner's profit and loss ratio were Amma, 40%; Juan, 40% and Berto 20% 2. On March 1, 2023, non-cash assets with a book value of P200,000 realized P150,000, and all available cash was paid to creditors and to partners. 3. On March 4, 2023. non-cash assets with a book value of P90,000 realized P70,000, and that amount was paid to partners.
- 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: P48,000Other assets: 238,000Liabilities: 80,000A, Capital: 88,000B, Capital: 62,000C, 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.On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cash on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?After years of operations, the partnership of De Vera, Dela Cruz, De Jesus is to be liquidated. After making the closing entries on February 28, 2022, the following accounts were left: Account Debit Credit Cash Non-cash Assets Liabilities De Vera, Capital Dela Cruz, Capital De Jesus, Capital 50,000 2,350,000 400,000 900,000 500,000 600,000 All the non-cash assets were sold for P2,650,000. Profits and losses are shared equally. Required: a. Prepare the statement of partnership liquidation b. Prepare the journal entries for the following: Sale of all non-cash assets and distribution of loss on realization to the partners • Payment of liabilities • Distribution of cash to the partners
