1. During June, non-cash assets were sold at 120% of carrying value resulting to a gain on realization. How much is the share of Levi on the gain on realization of non-cash assets? choices P29,880 P24,900 P 49,800 P 19,920 2. How much should Simeon and Levi receive upon final distribution of cash? (Simeon; Levi) P 131,880; P 118,920 P 155,880; P 118,920 P 118,920; P 131,880 P 118,920; P 155,880
1. During June, non-cash assets were sold at 120% of carrying value resulting to a gain on realization. How much is the share of Levi on the gain on realization of non-cash assets? choices P29,880 P24,900 P 49,800 P 19,920 2. How much should Simeon and Levi receive upon final distribution of cash? (Simeon; Levi) P 131,880; P 118,920 P 155,880; P 118,920 P 118,920; P 131,880 P 118,920; P 155,880
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 4BCRQ
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Question
1. During June, non-cash assets were sold at 120% of carrying value resulting to a gain on realization. How much is the share of Levi on the gain on realization of non-cash assets?
choices
P29,880
P24,900
P 49,800
P 19,920
2. How much should Simeon and Levi receive upon final distribution of cash? (Simeon; Levi)
P 131,880; P 118,920
P 155,880; P 118,920
P 118,920; P 131,880
P 118,920; P 155,880
3.
Transcribed Image Text:Simeon and Levi decided to liquidate their partnership business on June 1, 2017, under lump-sum
liquidation. The partners had been sharing profits and losses on a 60:40 ratio. The statement of financial
position prepared on the day of liquidation began was as follows:
Liabilities and Capital
Accounts payable
Simeon, loan
Assets
P 42,000
P 18,000
P 249,000
Cash
Non-cash assets
24,000
Simeon, capital
Levi, capital
Levi, drawing
Total
102,000
108,000
9,000
P267,000
Total
P267,000
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