of ABC Co. deof ABC Co. decided to liquidate their partnership. TheOn January 1, 20x1, the partnersfollowing information was made available:Cash30,000Accounts receivable380,000Inventory260,000Furniture & fixtures, net120,000Total790,000Accounts payable165,000A, Capital (70%)350,000Capital (30%)275,000TotalNTIA90,000tnershipC offered to buy for $760,000 the partnership assets including liabilities but excludingcash and after certain assets are to be restated to their fair values as follows:Accounts receivable, $350,000Inventory, P250,000Furniture, P135,000How much will A and B receive as final settlement of their partnership interests?ITX₁

To calculate the amount A & B will recevice the final settlement we need to calculate the fair…

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 30,000 Accounts receivable 380,000 Inventory 260,000 Furniture & fixtures, net 120,000 Total 790,000 Accounts payable 165,000 A, Capital (70%) 350,000 B, Capital (30%) 90,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: alTa 900 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 30,000 Accounts receivable 380,000 Inventory 260,000 Furniture & fixtures, net 120,000 Total 790,000 Accounts payable 165,000 A, Capital (70%) 350,000 B, Capital (30%) 90,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: alTa 900 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?

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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16. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment basis. Distributions to partners shall be made as cash becomes available. The following information was made available: Dr. 40,000 120,000 Cr. . Cash Accounts receivable Receivable from c 20,000 240,000 600,000 Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) C, Drawings Totals 60,000 40,000 200,000 40,000 300,000 400,000 60,000 1,060,000 1,060,000 During January, non-cash assets with carrying amount of P260,000 was sold for P120,000. Disposal costs amounted to P40,000. All of the partners are personally insolvent. How much did B receive on the cash distribution to the partners? a. 60,000 b. 74,000 c. 76,000 d. 0
JCA Partnership is entering into liquidation and you are given the following account balances: Cash 1,100,000 775,000 6,750,000 Liabilities Loan from A Noncash asset 150,000 J, capital (20%) 1,275,000 C, capital (20%) 1,625,000 3.375,000 A, capital (60%) Total liab, and capital Total Asset 7.525.000 7.525.000 During June, noncash asset with a book value of P1,875,000 were sold for P1,600,000. JCA paid P175,000 for the liquidation expenses it incurred and it also paid its liabilities to outsider creditors. However, creditors whose account balances amount to P150,000 decided to condone JCA's liabilities. % of the cash received from the sale of noncash assets were distributed to the partners. What is A's interest after the first cash distribution?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total Accounts payable A, Capital (20%) B, Capital (30%) C, Capital (50%) Total 80,000 240,000 480,000 1,200,000 2,000,000 600,000 200,000 400,000 800,000 2,000,000 The net proceeds from the sale of non-cash assets amounted to P260,000. The personal assets and personal liabilities of the partners are as follows: A с B Personal assets 1,200,000 1,040,000 800,000 Personal liabilities (880,000) (880,000) (1,280,000) How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?
2. The capital balances of partners Po and Gi are as follows:Po GiJanuary 1, Beginning P100,000 P200,000June 30, investment 50,000 -September 30, withdrawal - (100,000)Balance P150,000 P100,000Their agreement is to share profit and loss based on average capital balance. How muchis the share of Gi in the partnership’s income of P450,000?
The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of /R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? O A. R108 000 OB. R24 000 O C. R120 000 O D. R972 000
Problem 4: The balance sheet of the partnership of ABCD Co just before liquidation is presented below: A, loan 5,000 27,500 A, capital (40%) B. capital (30%) HA 25,750 34,250 22,500 C, capital (20%) D, capital (10%) Certain assets are sold for P30,000 and this is distributed to the partners. How much cash should C receive?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. 80,000 240,000 480,000 1,200,000 2,000,000 Cash Accounts receivable Inventory Equipment Total Accounts payable to B Payable A, Capital (20%) B, Capital (30%) C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 120,000 80,000 400,000 600,000 • $40,000 was collected on accounts receivable; the balance is uncollectible. $20,000 was received for the entire inventory. . The equipment was sold for $200,000./ $8,000 liquidation expenses were paid. • • #108,000 was paid to outside creditors, after offset of a 12,000 credit, memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?
The following Information was obtained from the records of Alben Traders, a partnership business with Albert and Bennile as partners, after the net profit was appropriated between the partners. Partners' salaries 240 000 Interest on drawings 3 000 Interest on capital 60 000 Total share of remaining loss 24 000 Drawings 180 000 Which one of the following reflects the net profit? A. R279 000 B.R273 000 C.R327 000 D. R453 000 ipe here to search
5. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts Receivable Inventory Furniture & fixtures, net Total Accounts Payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 120,000 790,000 165,000 350,000 175,000 790,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: Accounts receivable, P350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as the final settlement of their partnership interests?
Show the compleete solution. A balance sheet for the JPM Partnership, who shares profits in the ratio of 50:25:25 for partners shows the following balances just before liquidation: Cash P113,000 Other Assets 562,275 Liabilities 188,825 J Capital 207,900 P Capital 146,650 M, Capital 132,300 ON the first month of liquidation, certain assets with a book value of 500,000 were sold for 375,000. Liquidation expenses of P9450 are paid and additional liquidation expenses are anticipated. Liabilities are paid amounting to P51,500 and sufficient cash is retained to ensure the payment to creditors before making payment to partners. On the first payment to partners J receives 99537.50. 1. Calculate the amount of cash withheld for anticipated liquidation expenses. 2. How much cash were received by P?
Show the compleete solution. A balance sheet for the JPM Partnership, who shares profits in the ratio of 50:25:25 for partners shows the following balances just before liquidation: Cash P113,000 Other Assets 562,275 Liabilities 188,825 J Capital 207,900 P Capital 146,650 M, Capital 132,300 ON the first month of liquidation, certain assets with a book value of 500,000 were sold for 375,000. Liquidation expenses of P9450 are paid and additional liquidation expenses are anticipated. Liabilities are paid amounting to P51,500 and sufficient cash is retained to ensure the payment to creditors before making payment to partners. On the first payment to partners J receives 99537.50. 1. What is the balance of cash account after the first payment? 2. Calculate the amount of cash withheld for anticipated liquidation expenses. 3. How much cash were received by P?
35. The statement of financial position for the partnership of BBB, CCC and DDD who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000Other assets 59,500Liabilities 49,000BBB, capital 22,000CCC, capital 15,500DDD, capital (15,000) On the first installment of the liquidation, a gain of P8,525 was realized from the sale of certain assets. Liquidation expenses of P1,000 was paid, and additional liquidation expenses are anticipated. Liabilities paid amounted to P34,400. Remaining book value of other assets is P1,550. On the first payment to partners, CCC receives P6,250. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities is: a. 11,475b. 14,600c. 26,075d. 29,200