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INSTALLMENT LIQUIDATION
Julia, Kristine and James divide
The partners agreed to distribute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were realized. After paying liabilities and liquidation expenses of P6,000, the partnership had P140,000 left.
1. How much will Julia receive in the 1st cash distribution?
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- The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.A, B, C and D are partners, sharing earnings in the ration of 3:4:6:8. The balance of their capital accounts on December 21,2020 are as follows: A- P25,000; B- P625,000; C- P625,000 and D- P225,000. The partners decided to liquidate, and they accordingly convert the non-cash assets into P580,000 of cash. After paying the liabilities amounting to P75,000, they have P555,000 cash available for payment to partners. Assume that a debit balance in any of partner’s capital account is uncollectible. The book value of non-cash assets amounted to: ___PROBLEM XJulia, Kristine and James divide profits and losses equally. Just prior to liquidating their partnership, their respective account balances were P50,000, P96,000 and P74,000 as of January 31, 2018. Their total assets included cash of P5,000 and loan to Julia for P10,000, while their total liabilities of P90,000 included loan from James for P30,000.The partners agreed to distribute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were realized. After paying liabilities and liquidation expenses of P6,000, the partnership had P140,000 left.1. How much will Julia receive in the 1st cash distribution?
- As of December 31, 2021, the books of GOV Partnership showed the following balances: G – P400,000; O – P250,000; V – P50,000; Liabilities – P500,000; Cash – P55,000. The noncash assets include Accounts Receivable – V for P20,000. The partners share profits and losses in the ratio of 3:1:2. The partners decided to liquidate by installment after unfavorable results of operation for the last three years. Before the liquidation starts, the bookkeeper discovered unpaid bills amounting to P15,000 they scheduled payment immediately. In the first month, 50% of the noncash assets were realized for P500,000. Liquidation expenses of P10,000 and P350,000 of liabilities were paid. At the end of the first month, the available cash was paid to partners after setting aside P5,000 for contingencies. How much cash was available to partners?Sentinel, Megatron, and Galvatron divide profits and losses in a 2:3:4 ratio. Just prior to liquidating their partnership, their respective account balances were P50,000, P96,000, and P74,000 as of April 1, 2020. Their total assets include cash of P5,000 and a loan to Sentinel for P10,000, while their total liabilities of P90,000. include a loan form Galvatron for P30,000. The partners agreed to distribute cash, as it becomes available, at each month-end. Realization proceeds were P15,000 in April, P40,000 in May and P18,000 in June. 9. In the cash distribution for the month of June, the distributive share of Megatron amounted to A. 6,000 B. 6,476 C. 8,635 D. 18,857Show the solution in good accounting form Erik, John and Nate were partners with capital balances on January 2, 2020 of P70,000, P84,000 and P56,000, respectively. Their profit and loss sharing ratio is 3:5:2. On July 1, 2020, Erik retires from the partnership. On the date of retirement the partnership net profit from operations is P48,000. The partners agreed further to pay Erik P76,560 in settlement of his interest. How much will be the capital of John after the retirement of Erik? A. 113,600 B. 108,000 C. 94,933 D. 84,000
- G. Bench, Mark, Spencer, and Lee are partners, sharing earnings in the ratio of 3:4:6:8, respectively. The balances of their capital accounts on December 31, 2019 are as follows: Bench - P 1,000 Mark - P 25,000 Spencer - P 25,000 Lee - P 9,000 The partners decide to liquidate, and they accordingly convert the non-cash assets into P 23,200 of cash. After paying the liabilities amounting to P 3,000, they have P 22,200 cash to divide. Assume that a debit balance of any partners' capital is uncollectible. 1. How much is the cash balance before realization? 2. How much is the share of Bench in the loss upon conversion of the non-cash assets into cash?On Dec. 31, 2019, The Hungria and Blanche Partnership had the following assets, liabilities, and partners’ equity: Assets Liabilities Hungria, Capital Blanche Capital P1,000,000= P250,000+ P400,000+ P350,000 When the partners agreed to liquidate the business, the assets were sold for P800,000 and the liabilities were paid. Hungria and Blanche share profits and losses ratio of 3:1 respectively. What is the final cash distribution to each partner after liquidation?В. Pisces, Leo and Gemini share profits in the ration of 5:3:2, respectively. Capital and loan balances just prior to partnership liquidation are: САРITAL LOANS Pisces P 120,000 Pisces P 45,000 Leo 90,000 Leo 30,000 Gemini 40,000 Gemini 13,000 Non-cash assets are sold, and cash is distributed to partners in monthly installments during the course of liquidation as follows: January – P 15,000; February - P 40,000; March - P 90,000; April – P 30,000 (final distribution) Required: a) Prepare a program to show how cash should be distributed during the entire course of liquidation, b) Using the program developed in (a), prepare schedules summarizing the payments to be made to partners at the end of each month. c) Prepare a statement of liquidation to summarize the course of liquidation.
- Installment Liquidation: Practice ProblemEspeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept. 23, 2019. On that date, the statement of financial position of the partnership is as follows: Espeleta and De GuiaStatement of Financial PositionSept. 23, 2019 Assets Cash P 5,000Other Assets 100,000 Liabilities and Partners’ Capital Accounts Payable-TradeP 15,000 Loan Payable-De Guia 10,000 Espeleta, Capital 60,000 De Guia, Capital 20,000 On Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60,000, and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18,000 (net of liquidation costs), and all available cash was distributed to partners. Espeleta and De Guia share profits and losses 40% and 60%, respectively. Required:1. Partnership liquidation statement2. Schedule of safe payments3. Cash priority program including distribution…X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for $200,000, $175,000 and $375,000 respectively. Withdrawals of X, Y, and Z amounting to $125,000, $62,500 and $62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of $125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is: a. 125,000b. -125,000c. 625,000d. -625,000Partners I, J and K share profits and losses equally. On March 31, 2020, the partners voted to liquidate the partnership when its assets, liabilities, and capital were as follows: Cash Liabilities 77,000 60,500 440,000 Note receivable from K Loans: 22,000 88,000 Other noncash assets 660,000 J Capital 82,500 82,500 K 82,500 797,500 797,500 Assume the following: a) All the noncash assets of P660,000 were sold for P297,000 b) K instructed the partnership to write off the P60,500 he borrowed from the partnership c) All partners could eliminate any deficits in their capital accounts through offset or contribution, or both d) All cash was distributed to outside creditors and partners Required: 1. Prepare a Statement of Partnership Liquidation 2. Prepare the joumal entries to record the liquidation of the partnership