3. Balances before liquidation of the partnership of Kayang, Kaya, Ko, Kaya2 and Co. are as follows: P500,000 220,000 35,000 20,000 30,000 Non-cash Assets Liabilities Kaya Loan Ko Loan Kaya2 Loan Kayang, Capital (40%) Kaya, capital (20%) Ko, Capital (10%) Kaya2.Capital (30%) 55,000 50,000 45,000 45,000 Cash of P285,000 is available for distribution after the first sale of the non-cash assets. How much will partner Ko receive? Your answer
Q: XYZ Partnership begins the liquidation process with the following balance sheet and profit and loss…
A: Assuming non-cash assets realized to its value Total Cash available = 280000 + 300000 = 580000
Q: A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following…
A: A Partnership firm is disolved due to any reason like change is profit and sharing ratio, death of…
Q: Moose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000…
A: A partnership is an agreement between two or more parties to run a business and share its profits…
Q: A, B and C partnership had the following balances just before entering liquidation: Cash P10,000…
A: Partnership is a form of business organization in which two or more than two individuals come…
Q: After the realization of non-cash assets, the following account balances appeared in the genera…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: 47. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The…
A: Introduction: A partnership is a sort of business in which two or more people enter into a legal…
Q: 35. The statement of financial position for the partnership of BBB, CCC and DDD who share profits in…
A: In business and accounting, liquidation is the act of closing a company and transferring its assets…
Q: D, E and F are partners in DEF Partnership with profit or loss sharing ratio of 6:1:3. Due to…
A: E, Capital Balance before liquidation P40,00,000 Less: Amount Received by E at the end of…
Q: On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following…
A: A partnership is a form of business organization in which two or more individuals come together to…
Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to…
A: Pre distribution schedule- Pre-distribution is the idea that the state should try to stop…
Q: On January 1, 20x20, ACJ Partnership entered into liquidation. The partners' capital balances on…
A: Balance Sheet Liabilities and Capital Amount Assets Amount Loan from C P600,000…
Q: The XYZ partnership has the following balance sheet: Basis FMV Land $60,000 $81,000…
A: When investment interest is sold, then capital gain or loss is recognized. Nature of capital gain or…
Q: The ETO Partnership is in the process of liquidation. The account balances prior to liquidation are…
A: All amount are in (P).
Q: On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following…
A: Partnership is an agreement of at least two persons to run a business and share the profit and loss…
Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to…
A: A1) Calculation of Maximum Losses:-
Q: A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following…
A: Total Amount Available for Distribution = The amount received by Partner B x 1 / B's shares in…
Q: The Keller, Long, and Mason partnership had the following balance sheet just before entering…
A: The agreement which is made by more than two or two persons for carrying an objective and for a…
Q: The Al, Joyce and Rich partnership's condensed financial position prior to liquidation of the…
A: The partnership comes into existence when two or more persons come together to do the business and…
Q: The partnership of W, X, Y, and Z has the following balance sheet: Cash $ 40,000…
A: Question is based on the concept of Partnership Accounting
Q: The CFM Partnership shows the following profit and loss ratios and capital balances: Carter - 60% P…
A: In the context of the given question, we compute the capital balances of the partners. Here, the…
Q: A, B and C partnership had the following balances just before entering liquidation: Cash P10,000…
A: Liquidation Liquidation of partnership takes place when partners decide to dissolve and liquidate…
Q: The financial position of the partnership Marie, Shey, Allan and Roi, just prior to liquidation…
A: (1) On account of Liquidation, the following steps will be implemented : (a) The Profit or Loss on…
Q: A, B and C partnership had the following balances just before entering liquidation: Cash P10,000…
A: Cash Non-cash assets Liabilities A, Capital B, Capital C, Capital Balances December 31,…
Q: respectively. The balances of their capital accounts on December 31, 20x A.. . B.... C.... P1,000…
A: At the time of liquidation of partnership firm, deficiency of insolvent partner is borne by solvent…
Q: As of December 31, 2020, the books of ABC partnership showed capital balances of: A, P60,000; B,…
A: Total partnership capital = A's capital + B's capital + C's capital = P60,000 + P30,000 + P5,000…
Q: 1. What is the balance of cash account after the first payment? 2. Calculate the amount of cash…
A: Cash flow analysis is important for the business since it allows the business to assess the amount…
Q: 1. Done is as follows: one Partnership is undergoing liquidation. Information on Cash Accounts…
A: This question deals with the concept of liquidation of partnership firm. Liquidation may happen with…
Q: Under the installment method of liquidation, the partner with least cash priority is
A: Liquidation is the process through which the company or the partnership business liquidates the…
Q: SCA Partnership has the following account balances before liquidation: Cash P350,000 Liabilities…
A:
Q: On January 1, 20x20, ACJ Partnership entered into liquidation. The partners' capital balances on…
A: Liquidation of Firm: Liquidation is the process of putting a firm out of business. The company's…
Q: The financial position of the partnership Marie, Shey, Allan and Roi, just prior to liquidation…
A: Partnership is a type of business in which two or more than two partners agree to share profits and…
Q: RST partnership begins the liquidation process with the following balance sheet and profit and loss…
A: Partnership refers to an agreement where between two or more people come together for a common goal.…
Q: liquidation of the partnership: Below is the balance sheet of Gold Ace Company immediately…
A: When the partners are unable to bring in their share of losses, the partners with positive capital…
Q: If all the partners are insolvent and the non-cash assets were sold at P 10,000, what is the entry…
A: Loss on sale of Non cash assets = P500,000 - P10,000 = P490,000
Q: ABC, DEF and GHI who share earnings 5:3:2, respectively, decided to liquidate their partnership at…
A: The liquidation of a partnership business results is sale of assets and repayment of the liability.…
Q: Cash P113,000 Other Assets 562,275 Liabilities 188,825 J Capital 207,900 P Capital 146,650 M,…
A: Cash flow analysis is important for the business since it allows the business to assess the amount…
Q: fter the realization of non-cash assets, the following account balances appeared in the genera…
A: Realization Account: When the firm dissolved then a new account is opened that is known as…
Q: bided to liquidato On January 1, 20x1, the partners of ABC Co. decided to liquidate their…
A: Net Proceeds from sale Non cash assets= P 260,000 Cash= P 80,000 Total= P 260,000 + P 80,000 = P…
Q: A, B and C partnership had the following balances just before entering liquidation: Cash P10,000…
A: Realisation A/c Particulars Amount Particulars Amount To Non-Cash Assets P300,000 By…
Q: A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following…
A: On dissolution of the partnership firm, the non-cash assets are liquidated. The liabilities of the…
Q: The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account…
A: This question deals with the concept of liquidation of partnership. Liquidation may happen due to…
Q: 28. As of December 31, 2021, the books of Ton partnership showed capital balances of: T P40,000; O,…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following…
A: (1) Profit sharing Ratio of A, B, C = 2 : 1 :1 => A = 2/4 th = 1/2 th share => B = 1/4 th =…
Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to…
A: Cash Distribution Plan: It is the ranking of partners in terms of vulnerability of possible losses…
Q: 16. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installmer…
A: Partnership refers to an agreemet between two or more persons to carry on a business together and…
Q: 1. Done Partnership is undergoing liquidation. Information on Done is as follows: Cash Accounts…
A: Liquidation of Partnership Firm: If It's impossible to continue doing business if you dissolve a…
Q: A balance sheet for the partnership of KK, LL and MM, who share profits 2:1:1 respectively, shows…
A: First a Realisation account will be created to sell the non-cash assets and pay back the liabilities…
How much will partner Ko receive?
Step by step
Solved in 2 steps with 2 images
- Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. What is the amount paid to unsecured creditors without priority? 2. What is the amount paid to partially secured creditors?Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. How much are the total free assets? _____________2. How much are the unsecured liabilities with priority? _____________3. How much are the…Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. How much are the total free assets? _____________2. How much are the unsecured liabilities with priority? _____________3. How much are…
- Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 7. What is the amount paid to unsecured creditors without priority? _____________8. What is the amount paid to partially secured…Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 4. How much are the net free assets? _____________5. What is the estimated deficiency? _____________6. What is the estimated recovery…The statement of financial position of L, M, and N just before liquidation shows the following:Cash P 20,000 ; Non-cash Assets 240,000 ; Accounts Payable 40,000 ; N, Loan 40,000 ; L, Capital 62,000 ; M, Capital 88,000 ; N, Capital 30,000L, M, and N share profits and losses in the ratio of 3:2:5, respectively. The non-cash assets were sold for P160,000. How much cash is received by N in full settlement of his total interest in the partnership, including loan?
- ABC Company is in a capital deficiency position and is considering the possibility of liquidation. An analysis of the assets and liabilities of the entity is provided: Assets at net realizable value (pledged against liabilities of P150,000) 250,000 Assets at net realizable value (pledged against liabilities of P260,000) 100,000 Assets at net realizable value (not pledged against any liabilities) 160,000 Liabilities with priority 85,000 Unsecured creditors 400,000 Round off the estimated recovery percentage to XX.XX%, if needed. How much is the estimated payment to partially secured creditors?The statement of financial position of the firm AA, BB and CC immediately before liquidation shows the following: Assets 640,000 Liabilities 240,000 AA, Loan 64,000 AA, Capital 168,000 BB, Capital 120,000 CC, Capital 48,000 Total 640,000 AA, BB and CC share profits 5:3:2 respectively. Certain assets are sold for P440,000. Creditors are paid in full, partners are paid P140,000 and cash of P60,000 is withheld for contingencies. How much cash is to be distributed to AA?ABC Corporation has the following information toestimate its liquidation value.Cash = 50,000Noncash Assets, Book Value = 100,000Noncash Assets, Selling Price =140,000Cost to Dispose (40% chance) =10,000Cost to Dispose (60% chance) =25,000Liabilities, Book Value = 60,000Liquidation cost to be incurred = 5,000Based on the information above, how much is the expected net liquidation value of the corporation? a. 90,000.00 b. 109,000.00 c. 125,000.00 d. 106,000.00
- Read and understand the problem below. Write the answer on the space provided below. The capital accounts of X and Y Company before the admission of Z are as follows: Capital accounts P/L ratios X, Capital P100,000 30% Y, Capital 200,000 70% P300,000 Case 1 Z purchases 10% interest out of the 30% interest of A for P100, 000. The net assets of the firm as of this date approximate their fair values. Provide the journal entry to record the transaction. Case 2 Z purchases 10% interest in the partnership by investing P70,000 cash to the business. The net assets of the firm as of this date approximate their fair values. Requirements: Provide the journal entry to record the admission of Z.(show your computation below) Compute for capital balances of the partners after the admission of Z. (show your computation below) Compute for the new P/L ratios of the partners.60. ABC Company is in a capital deficiency position and is considering the possibility of liquidation. An analysis of the assets and liabilities of the entity is provided: Assets at net realizable value (pledged against liabilities of P150,000) P250,000 Assets at net realizable value (pledged against liabilities of P260,000) 100,000 Assets at net realizable value (not pledged against any liabilities) 160,000 Liabilities with priority 85,000 Unsecured creditors 400,000 Round off the estimated recovery percentage to XX.XX%, if needed. How much is the estimated payment to fully secured creditors?The statement of financial position of Weatherly Unlimited (Pty) Ltd is presented below: Statement of FinancialPosition as at 28 February 2022 R Non - current assets 1 850 000 Property, plant and equipment 1.850 000Current assets 1 250 000 Inventory 480 000 Trade receivables 350 000 Cash and cash equivalents 420 000TOTAL ASSETS 3 100 000 EQUITY 1 850 000 Ordinary share capital 1 000 000 Distributable reserves 850 000Non - current liabilities 650 000 Long-term loan 650 000 Current liabilities 600 000 Trade payables 545 000Short-term portion of long-term loan 55 000 TOTAL LIABILITIES 1 250 000 TOTAL EQUITY AND LIABILITIES3 100 000 Additional information: The company plans to increase its sales by 10% in the following year. Current annual sales total R2 500 000. After tax profit margin is 5% and half of the profits is retained within the company. All sales are currently made on credit and in future, sales will remain on credit. What is the additional working capital required to support…