HLOPHEKANE FARMING had the following balances when they commenced a simultaneous liquidation of the partnership: Farming equipment (cost)........ Farming equipment (accumulated depreciation)... Trade receivables... Trade payables.... The following transactions took place as part of the liquidation: 1. Farming equipment were sold for R198 800 2. Debtors settled their accounts in full 3. On settlement, the creditors granted a settlement discount of R1 600 Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation of Hlophekane Farming? a. R 460 500 b. R 197 100 c. R 62 900 d. R 64 500 R 397 500 R 134 200 R 64 600 R 29 900

HLOPHEKANE FARMING had the following balances when they commenced a simultaneous liquidation of the partnership: Farming equipment (cost)........ Farming equipment (accumulated depreciation)... Trade receivables... Trade payables.... The following transactions took place as part of the liquidation: 1. Farming equipment were sold for R198 800 2. Debtors settled their accounts in full 3. On settlement, the creditors granted a settlement discount of R1 600 Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation of Hlophekane Farming? a. R 460 500 b. R 197 100 c. R 62 900 d. R 64 500 R 397 500 R 134 200 R 64 600 R 29 900

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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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Req A1 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 $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $78,000 are sold for $62,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Step 1 $ 40,000 224,000 Partner Capital Balance Drysdale Koufax Marichal 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. Step 2 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal,…
Given information for question below: MAQHUZE WELDERS had the following balances when they commenced a simultenous liquidation of the partnership: 432 000 Welding equipment (cost).. Welding equipment (accumulated depreciation).. Trade receivables.. 145 800 70 200 Trade payables.. 32 400 The following transactions took place as part of the liquidation: 1. Welding equipment were sold for.. 2. Debtors settled their accounts in full 3. On settlement, the creditors granted a settlement discount of... 3. Liquidation costs amounted to... 216000 1700 27000 . *... QUESTION 1 Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation? A. 68 500 B. 74 500 C. 89 400 D. 76 200
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