A. 36,000B. 0C. 38,720D. 2,500 A local partnership was considering the possibility of liquidation since one of the partners issolvent (Tillman) and the others are insolvent. Capital balances at that time were as follows. Profitsand losses were divided on a 4:2:2:2 basis, respectively.Ding, capitalLaurel, capitalEzzard, capitalTillman, capital60,00067,00017,00096,000Ding's creditors filed a P25,000 claim against the partnership assets. At that time, the partnershipheld assets reported at P360,000 and liabilities of P120,000. If the assets could be sold forP228,000, what is the minimum amount that Ding's creditors would have received?

Solution:- Introduction:- The partnership business is mutual agreement between two or more people…

Answered: A local partnership was considering the…

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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A partnership is in the process of liquidation since only one of the partners(ME) is solvent. Capital balances at the time of liquidation were asfollows. Profits and losses are divided on a 4:2:2:2 basis, respectively. MA, Capital 60,000SA, Capital 67,000YA, Capital 17,000ME, Capital 96,000 MA’s creditors filed a P25,000 claim against the partnership’s assets. Atthat time, the partnership held assets reported at P360,000 and liabilitiesof P120,000. If the assets could be sold for P228,000, what is the minimum amount thatMA’s creditors would have received?A. 38,720 C. 2,500B. 36,000 D. 0
A local partnership was considering the possibility of liquidation since one of the partners (Ding) wasinsolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2basis,respectively. Ding, Capital – P60,000; Laurel, Capital – P67,000; Ezzard, Capital – P17,000; Tillman,Capital – P96,000. Ding’s creditors filed a P25,000 claim against the partnership’s assets. At that time, thepartnership held assets reported at P360,000 and liabilities of P120,000. If the assets could be sold forP228,000 what is the minimum amount that Ding’s creditors would have received? a. P -0-b. P2,500c. P36,000d. P38,250
A partnership has gone through liquidation and now reports the following account balances: Cash Loan from Jones Wayman, capital Jones, capital Fuller, capital Rogers, capital $16,000 3,000 (2,000) (deficit) (5,000) (deficit) 13,000 7,000 Profits and losses are allocated on the following basis: Wayman, 30 percent; Jones, 20 percent; Fuller, 30 percent; and Rogers, 20 percent. Which of the following events should occur now? a. Jones should receive $3,000 cash because of the loan balance. b. Fuller should receive $11,800 and Rogers $4,200. c. Fuller should receive $10,600 and Rogers $5,400. d. Jones should receive $3,000, Fuller $8,800, and Rogers $4,200
Duncan, Tribe, and Ho are partners sharing income 3:2:1. After the firm’s loss from liquidation is distributed, the capital account balances were: Duncan, $15,000 Dr; Tribe, $50,000 Cr; and Ho, $40,000 Cr. If Duncan is personally bankrupt and unable to pay any of the $15,000, what will be the amount of cash received by Tribe and Ho upon liquidation?
A and B formed a partnership and agreed to divide initial capital equally even if A contributed P100,000 and B contributed P84,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, what amount should be debited to B's unidentifiable assets?
A&B Co. is undergoing liquidation. Before the liquidation, A&B Co. had P40,000 cash, some non-cash assets, liabilities of P60,000, and the following capital balances: A (60%), P200,000 and B (40%), P400,000. The partnership incurred loss of P240,000 on the initial sale of non-cash assets. Only A is se 5. hers on solvent. Requirements: Compute for the following: a. Carrying amount of the non-cash assets b. Net proceeds from the sale of non-cash assets c. Cash distributions to A and B s: apital
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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Use the following information for the next five questions: The partners Athena, Aphrodite, and Hera who shared profit and losses in the ratio of 4:2:2 has decided to dissolve and liquidate their partnership. In the process of liquidation, their non-cash assets of P490,000 was realized at a loss of P340,000. However, they were able to pay their obligations to outside creditors of P105,000. The partner’s equity balance before the start of the liquidation has totaled to P450,000 to P450,000, broken down as follows: (Tip: Prepare a liquidation statement to answer the proceeding questions. Make sure that A=L+PE) Athena -P180,000 Aphrodite - 150,000 Hera - 120,000 10. At what amount were the non-cash assets realized? a. 150,000 c. 200,000 b. 175,000 d. 225,000 11. How much was the cash balance at the beginning of the liquidation process? a. 60,000 c. 70,000 b. 65,000 d. 75,000 12. How much is the cash balance of the company after paying its obligation? a. 320,000 c. 110,000 b. 90,000…
A partnership has gone through liquidation and now reports the following account balances: Cash Loan from Molina Ashman, capital Molina, capital Pinckney, capital Diaz, capital $ 16,000 3,000 (2,000) (deficit) (5,000) (deficit) 13,000 7,000 Profits and losses are allocated on the following basis: Ashman, 30 percent; Molina, 20 percent; Pinckney, 30 percent; and Diaz, 20 percent. Required: Calculate the safe payments that can be made to individual partners. Adjusted balances (safe payments) Answer is complete but not entirely correct. Molina $3,200 Ashman $ 4,800 Pinckney $ 4,800 x $ Diaz 3,200 x
Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to liquidate. The condensed statement of financial position immediately prior to the liquidation shows the following: Cash P 400,000 Non-cash Assets 1,600,000 Liabilities 560,000 E, Loan 40,000 E, Capital 180,000 F, Capital 420,000 G, Capital 800,000 After paying liabilities to partnership creditors, cash of P830,000 is available for distribution to partners. Any…
The total of the partners’, capital accounts was P110,000 before the recognition of partnership assetrevaluation in preparation for the final withdrawal of a partner whose profit or loss sharing is 2/10. Hewas paid P28,000 by the firm in final settlement for his interest. The remaining partners’ capitalaccounts, excluding their share of the assets revaluation, totaled P90,000 after his withdrawal.What was the total asset revaluation that the firm agreed upon?

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