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Gorio, Dario, and Erio, partners sharing profits and losses based on 4:4:2 decided to liquidate. All assets of the partnership were liquidated. The condensed balance sheet just prior to liquidation follows: Assets Cash Other Assets Total P200,000 800,000 P1,000,000 Liabilities and Capital Liabilities Gorio, Loan Gorio, Capital Dario, Capital Erio, Capital Total P280,000 20,000 90,000 210,000 400,000 P1,000,000 Other assets were sold for P495,000 realizing a loss of P305,000. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net

Gorio, Dario, and Erio, partners sharing profits and losses based on 4:4:2 decided to liquidate. All assets of the partnership were liquidated. The condensed balance sheet just prior to liquidation follows: Assets Cash Other Assets Total P200,000 800,000 P1,000,000 Liabilities and Capital Liabilities Gorio, Loan Gorio, Capital Dario, Capital Erio, Capital Total P280,000 20,000 90,000 210,000 400,000 P1,000,000 Other assets were sold for P495,000 realizing a loss of P305,000. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net

FINANCIAL ACCOUNTING
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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Topic: Partnership Liquidation Use lump sum method
Gorio, Dario, and Erio, partners sharing profits and losses based on 4:4:2 decided to liquidate. All assets of the partnership were liquidated. The condensed balance sheet just prior to liquidation follows: Assets -Cash Other Assets Total P200,000 800,000 P1,000,000 Liabilities and Capital Liabilities Gorio, Loan Gorio, Capital Dario, Capital Erio, Capital Total P280,000 20,000 90,000 210,000 400,000 P1,000,000 Other assets were sold for P495,000 realizing a loss of P305,000. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle the liquidation of the partnership Show your computation.
Transcribed Image Text:Gorio, Dario, and Erio, partners sharing profits and losses based on 4:4:2 decided to liquidate. All assets of the partnership were liquidated. The condensed balance sheet just prior to liquidation follows: Assets -Cash Other Assets Total P200,000 800,000 P1,000,000 Liabilities and Capital Liabilities Gorio, Loan Gorio, Capital Dario, Capital Erio, Capital Total P280,000 20,000 90,000 210,000 400,000 P1,000,000 Other assets were sold for P495,000 realizing a loss of P305,000. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle the liquidation of the partnership Show your computation.
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