Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent.On Jan. 17, 2021, after all non-cash assets had been realized and all available cash had beendistributed to creditors, the statement of financial position of the partnership is as follows:Liabilities and Partners' Capital:Accounts payable - TradeP60,000120,000Pateno, CapitalBautista, Capital-160,000Apalisoc, Capital-20,000P-0-Total liabilities & partners' capitalThe partners share profits and losses (including gains and losses in liquidaion) in theratio 20%, 50% and 30%, respectively. On Jan. 17, 2021, the personal financial positionsof the partners were as shown below:PartnerAssetsLiabilitiesPatenoP60,000P80,000Bautista280,000200,000Apalisoc250,000240,000Required: Determine the receipt of cash from Bautista and Apalisoc, the appropriatedistribution of cash, and the completion of the partnership liquidation.

Liquidation when all the partners or any one of them became insolvent then the business of the…

n Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been istributed to creditors, the statement of financial position of the partnership is as follows: abilities and Partners' Capital: ccounts payable - Trade P60,000 120,000 ateno, Capital autista, Capital -160,000 palisoc, Capital -20,000 ptal liabilities & partners' capital P-O-

n Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been istributed to creditors, the statement of financial position of the partnership is as follows: abilities and Partners' Capital: ccounts payable - Trade P60,000 120,000 ateno, Capital autista, Capital -160,000 palisoc, Capital -20,000 ptal liabilities & partners' capital P-O-

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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On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash – P100,000 Loan to B – P25,000 Other assets – P1,075,000 Liabilities to outsiders – P603,000 Due to C – P32,000 A, Capital – P216,000 B, Capital – P187,000 C, Capital – P162,000 A, B, and C share profits and losses in the ratio of 4:4:2, respectively CASE 1: The partnership was able to sell all the other assets for P1,120,000 and paid liquidation expenses of P10,000. 1. How much cash should A, B, and C receive?
1. As of December 31, 2022, the books of AME Partnership showed capital balances of A, P40,000; M, P25,000; E P50,000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in distribution of the P28,000 cash would be: A. P18,000 B. P0 C. P19,000 D. P17,800 2. Cloe, Doe and Lida are partners with capital balances on December 31, 2021 of P300,000, P300,000 and P200,000 respectively. Profits are shared equally. Lida wishes to withdraw and it is agreed that she is to take certain furniture and fixtures with second hand value of P50,000 which are carried on the books at P65,000. Brand new, the furniture and fixtures may cost, P80,000. How much is the value of the note that Lida will get from the…
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