The partnership of Sarabia, Selisana and Gevera is about to be liquidated. All the asses have been sold for cash and the creditors have been fully paid. The capital accounts of the partners have the following balances at the date of liquidation: Sarabia P600,000 credit Selisana P240,000 debit Gevera P360,000 credit The three partners share profits and losses equally. There remains P720,000 cash for distribution to partners. Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: (show your solutions) Selisana is personally insolvent. He has no personal assets. Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit. Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered.
The
Sarabia P600,000 credit
Selisana P240,000 debit
Gevera P360,000 credit
The three partners share
Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: (show your solutions)
Selisana is personally insolvent. He has no personal assets.
Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit.
Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered.
Escareal, Acosta, and Lopez are liquidating their business. They share profits and losses in a 2:3:1 ratio, respectively, and currently have capital balances of P300,000, P210,000, and P390,000, respectively. In addition, the partnership has P150,000 in cash, P250,000 in accounts payable, and P1,000,000 in noncash assets. Escareal and Lopez personally solvent, but Acosta is not. Assuming that the noncash assets are sold for P460,000, prepare the statement of liquidation and
Gulane, Tormis, and Sailadin decided to liquidate their partnership on June 30, 2018. The partners shared profits and losses in the ratio of 2:2:1, respectively. The firm’s post-closing
Step by step
Solved in 5 steps
