The ETO Partnership is in the process of liquidation. The account balances prior to liquidationare given below:DebitsCreditsP 72,00010,00015,00020,00021,000CashLiabilitiesP 40,000Aurora, drawingEsteban, drawingTyro, drawingOperating lossEsteban, loanTyro, loanAurora, capitalEsteban, capitalTyro, capital8,00025,00049,00018,000Loss on realization12,00010,000The partners share profits in the following ratio: Aurora, 1/6; Esteban, 2/6; and Tyro, 3/6.Upon liquidation of the partnership, Aurora should have received:

Answered: The ETO Partnership is in the process…

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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Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166
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?
Below is the pre-liquidation Balance Sheet for Cook, Pichai, & Barra Partners. Cook, Pichai, & Barra Partners Partnership Balance Sheet as of 12/31/20x1 Assets Liabilities and Partners’ Capital Cash $200,000 Liabilities $150,000 Noncash assets 300,000 Cook, Capital 100,000 Pichai, Capital 130,000 Barra, Capital 120,000 Total assets $500,000 Total Liabilities & Partners’ Capital $500,000 At this time, the partners have agreed to liquidate the partnership. Partners’ income/loss sharing ratios are Cook – 50%; Pichai - 25%; and Barra – 25%. In liquidation: Estimated liquidation expenses = $10,000 Partners expect to dispose of noncash assets for $180,000 Required: Using the information above, prepare a Pre-distribution Plan for the partnership, in good form.
The statement of financial position for the partnership of AA, BB and CC who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000 Other assets 59,500 Liabilities 49,000 AA, capital 22,000 BB, capital 15,500 CC, capital (15,000) On the first instalment 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 P34,000. Remaining book value of other assets is P1,550. On the first payment to partners, AA receives P6,250. How much is the amount of cash withheld for anticipated liquidation expenses and unpaid liabilities? Group of answer choices P1,550 P2,550 P27,650 P29,200
The statement of financial position for the partnership of AA, BB and CC who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000 Other assets 59,500 Liabilities 49,000 AA, capital 22,000 BB, capital 15,500 CC, capital (15,000) On the first instalment 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 P34,000. Remaining book value of other assets is P1,550. On the first payment to partners, AA receives P6,250. How much is the amount of cash withheld for anticipated liquidation expenses and unpaid liabilities?
The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4…
Write a Sample Format of Statement of Liquidation (Lump Sump) Other Instruction (Assumptions) 1. Values should be written as XXX if positive and (XXX) if negative 2. 7 Partners [Jk, V, RM, Jimin, Hobi, Jin and Suga] 3. There is a gain in the realization of assets 4. There is liquidation expense. 5. V has receivables from partnership. 6. Jin and Suga have payables to the partnership
The following are the account balances as of June 30, 2022 of JPP Partnership just before liquidation:Cash - 100000Inventory - 600000Furniture - 200000Equipment - 400000Accounts Payable - 200000Loans from Pedro - 200000Juan, capital - 20% - 300000Pedro, capital -35% - 310000Pablo, capital - 45% - 280000The following events occurred thereafter:Jul 1 - Equipment was sold for P380,000Jul 15 - Furniture was sold for P 210,000Jul 30 - Inventory with book value of P500,000 was sold for P200,000Aug 15 - Remaining inventory was sold for P 80,000a. Prepare a liquidation report.b. Prepare a cash distribution report/computation for safe payment for each time the partnership will be paying off the partners.c. Prepare a cash priority program and show how it can be used to settle the partner’s equity balances.d. Indicate on the space provided the total cash each partner would receive.
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount Land and Buildings 212500 Plant and Machinery 127500 Wages 106250 Opening Stock of Finished Goods 1381250 Opening Stock of Raw material 10625 Opening Stock of Work in Progress 76500 Provision for bad debts 6375 Sundry debtors 212500 Commission 42500 Carriage inwards 6375 Y's Loan A/c 127500 Carriage outwards 3825 Factory Expenses 31875 Royalties 6375 Purchase of Raw material (net) 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses 31875 Salaries of works manager 51000 Cash at bank 34850 2014500 2014500 The following additional information is to be taken into…
3. LCX, MRD, and NTJ are partners in LMN Partnership. The partnership contract stipulated that profit or loss shall be divided as follows: Salaries of P175,000 to LCX, P262,500 to MRD, and P350,000 to NTJ; A bonus to NTJ of 10% of profit after deduction of partners' salaries; Remaining profit or loss as follows: 30% to LCX, 40% to MRD, and 30% to NTJ.
ABC partnership has the following account balancesbefore liquidation: Cash, P15,000; Non-cash assets, 225,000; Accounts Payable, P50,000; A Capital, P40,000; B Capital, P100,000; and C Capital,P50,000. The partners have profit and loss ratio: A = 30%; B = 50%; and C = 20%Compute for the amount to be received by each partner after liquidation if the non-cash assets were sold for P75,000. If all partners are solvent, what is the final cash distribution for C?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 41,000 229,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $46,500 21,000 77,500 67,500 57,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $20,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $79,000 are sold for $62,500. How is the available cash to be divided?

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