On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 Plant assets - net 12,000 B, Capital (30%) 10,000 Loan to A 6,000 C, Capital (50%) 6,000 42,000 Total 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 202 and began the liquidation process. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 • All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: The cash available for distribution to the partners on July 31, 2021 is?

On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 Plant assets - net 12,000 B, Capital (30%) 10,000 Loan to A 6,000 C, Capital (50%) 6,000 42,000 Total 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 202 and began the liquidation process. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 • All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: The cash available for distribution to the partners on July 31, 2021 is?

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 June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 12,000 B, Capital (30% ) 6,000 C, Capital (50%) Plant assets - net 10,000 Loan to A 6,000 42,000 Total 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021 and began the liquidation process. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: The book value of the partnership equity (i.e., total equity of the partners) on June 30, 2021 is?
On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 Plant assets - net 12,000 B, Capital (30%) 10,000 6,000 C, Capital (50$) Loan to A 6,000 Total 42,000 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021, and began the liquidation process,.. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: How much cash would B receive from the cash that is available for distribution on July 31?
The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follçavs: ASSETS LIABILITIES AND CAPITAL 30,000 Liabilities 40,000 Loan from S 80,000 Q, Capital (30%) 140,000 R, Capital (50%) 10,000 S, Capital (20%) 100,000 20,000 90,000 60,000 Cash Receivable, net Merchandise Inventory Non-current Asset Loan to R 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follows: ASSETS LIABILITIES AND CAPITAL Cash 30,000 Liabilities 100,000 Receivable, net 40,000 Loan from S 20,000 Merchandise Inventory 80,000 Q, Capital (30%) 90,000 Non-current Asset 140,000 R, Capital (50%) 60,000 Loan to R 10,000 S, Capital (20%) 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
The assets and capital of QRS Partnership at the end of its fiscal year on October 31,2021 are as follows: Assets Liabilities and Capital Cash 30,000 Liabilities 100,000 Receivable, net 40,000 Loan from S 20,000 Merchandise inventory 80,000 Q, Capital (30%) 90,000 Non-current Asset 140,000 R, Capital (50%) 60,000 Loan to R 10,000 S, Capital (20%) 30,000 The partners decide to liquidated the partnership. They estimated that the noncash assets other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is o be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution? Please provide a good accounting form for the solution. Thank you so much!
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follevs: ASSETS LIABILITIES AND CAPITAL Cash 30,000 Liabilities 100,000 Receivable, net Merchandise Inventory 40,000 Loan from S 20,000 80,000 Q, Capital (30%) 140,000 R, Capital (50%) 10,000 S, Capital (20%) 90,000 Non-current Asset 60,000 Loan to R 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?
The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: a) Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed. b) Assuming that a total amount of P 75,000 is available for distribution to partners after liabilities to outside creditors have been paid, show how the cash will be distributed to the…
The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed. Assuming that a total…
As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: MM AA Cash P 15,000 P 38,000 Accounts Receivable 680,000 255,000 Allowance for doubtful accounts (140,000) (30,000) Merchandise Inventory - 202,000 Machinery and Equipment 150,000 270,000 Total P705,000 P735,000 Accounts Payable 135,000 240,000 MM, capital 570,000 AA, capital - 495,000 Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that ofAA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM andP40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
The statement of financial position of A, B, C partnership as of December 31, 2020 is presented below: CASH P50,000 OTHER ASSETS 300,000 RECEIVABLE FROM B 10,000 TOTAL P360,000 LIABILITIES P80,000 A, LOAN 20,000 A, CAPITAL 120,000 B, CAPITAL 90,000 C, CAPITAL 50,000 TOTAL P360,000 Profits and loss ratio is 30%, 50% and 20% for A, B and C, respectively. Other assets were realized as follows: DATE CASH RECEIVED BOOK VALUE JAN. 2020 90,000 P120,000 FEB. 2020 P100,000 P80,000 MAR. 2020 125,000 P100,000 Liquidation expenses paid are as follows: January - P3,000 February - P5,000 Cash is distributed as assets are realized; how much is the total cash received by partner A at the end of the liquidation?
The assets and equities of the A, B and C Partnership at the end of its fiscal year on October 31, 2019 are as follows: Assets: Liabilities and capital Liabilities – creditors P50,000 Loan from C Cash P15,000 Receivable – net 20,000 10,000 Inventory Plant assets – net 40,000 70,000 5,000 A, Capital B, Capital C, Capital 45,000 30,000 15,000 Loan to B The partners decide to liquidate the partnership. They estimate that the noncash assets, other than the loan to B, can be converted into P100,000 cash over the two months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Assuming P65,000 is available for first distribution, it should be paid to (and how much)