Liabilities of P300,000 were settled in full for P224,000. The P76,000 difference would be reported on the statement of realization and liquidation as: [A] Liabilities not liquidated [B] Liabilities to be liquidated [C] Gain [D] Loss
1. Liabilities of P300,000 were settled in full for P224,000. The P76,000 difference would be reported on the statement of realization and liquidation as:
[A] Liabilities not liquidated
[B] Liabilities to be liquidated
[C] Gain
[D] Loss
2. Which of the following is incorrect on why a particular partner may have a deficit balance during a partnership liquidation?
I. The partner with the deficit may have the greatest
II. The partner with the deficit may have made the greatest withdrawals from the partnership
III. The partner with the deficit may have the smallest profit and loss residual ratio
{A}. I only
{B}. II only
{C}. III only
{D}. I and II only
3. When making a distribution to partners during a partnership liquidation, the partner who should receive the last allocation of the distribution is the one who has which of the following?
[A] The largest capital account balance
[B] The largest loss absorption power
[C] The smallest capital account balance
[D] The smallest loss absorption power
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