FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:payments to partners are made when cash becomes available.
C. a partner withdraws from the business and the enterprise continues to function.
d. full payment is made to all outside creditors before remaining cash is distributed to part-
ners in a final lump sum payment.
40.
Partner Jones, Kerr, and Lyons have decided to liquidate their partnership The partnership's
statement of financial position reveals the following:
Cash
Other assets
Liabilities
60,000
50,000
500,000
Jones, capital
Kerr, capital
Lyons, capital
180,000
240,000
70,000
550,000
550,000
======
======
The partners share profits and losses in a 4:4:2 ratio and all partners are personally solvent. Lyons
received P98,000 in cash in full settlement for her share of the partnership. The selling price for the
other asset is:
a. P690,000
b. P640,000
C. P360,000
d. P410,000
Silverio, Domingo, Reyes, and Pastor are partners sharing earnings in the ratio of 3:4:6:8
respectively. The balances of their capital accounts on December 31, 2011 are as follows: Silverio P
1,000; Domingo P25,000; Reyes P 25,000; and Pastor P9,000.
The partners decided to liquidate, and they accordingly convert the non-cash assets into P23,200 of
cash. After paying the liabilities amounting to P3,000, they have P22,200 to divide. Assume that a
debit balance in any partner's capital accounts is uncollectible. After the P22,200 was divided, the
capital balance of Domingo was:
41.
а. Р3,200
b. P3,920
C. P4,500
d. P17,800
Matias, Pagayanon and Pescasiosa, partners sharing profit and losses based on 4:4:2 decided to
liquidate. All assets of the partnership were liquidated. The condensed statement of financial position
just prior to liquidation follows:
42.
Assets
Cash
liabilities and capital
liabilities
P100, 000
400, 000
P140, 000
10, 000
45, 000
105, 000
200, 000
P500,000
Other assets were sold for P247, 500 realizing a loss of P152, 500. 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
Other assets
Matias, loan
Matias, capital
Pagayanon, capital
Pescasiosa, capital
Total
P500, 000
Total
capital deficiency.
Name the partner and give the corresponding additional cash he had to invest due to his net capital
deficiency to finally settle to the liquidation of the partnership.
a Pagayanon, P44,000
Pescasiosa, P30, 500
Matias, P16,000
d Matias, P6,000
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