a sample of Liquidation (Lump Sump) Other Instruction (Assumptions) 1. Values should be written as XXX if positive and (XXX) if negative 27 Partners Simon Harry Vik
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![Write a Sample Format of Statement
of Liquidation (Lump Sump)
Other Instruction (Assumptions)
1. Values should be written as XXX if
positive and (XXX) if negative
2. 7 Partners [JJ, Simon, Harry, Vik,
Josh, Ethan and Tobi]
3. There is a gain in the realization of
assets
4. There is liquidation expense.
5. Simon has receivables from
partnership.
6. Ethan and Tobi have payables to the
partnership (Non-anonymous question) *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7fbf8af-f74f-44a0-9697-d9286e19580a%2F02ed9f23-8af8-4d46-ba71-02ab8ff7bd89%2Fxcfcfzg_processed.jpeg&w=3840&q=75)
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- Statement I: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will be equal to the total interest of the partners.Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest. Group of answer choices Both statements are false Both statements are true S1 is true; S2 is false S1 is false; S2 is trueThe Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 59,000 Liabilities $ 54,500 Noncash assets 319,000 Drysdale, loan 40,000 Drysdale, capital (50%) 104,500 Koufax, capital (30%) 94,500 Marichal, capital (20%) 84,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $97,000 are sold for $71,500. How is the available cash to be divided?After Non-Cash Assets have been sold and liabilities paid, the final step in the liquidation process is to distribute the balance of Cash to the partners. Consider the following: Cash $20 A, Capital Balance $8 B, Capital Balance $12 Gains and losses are shared equally between the partners. Which of the following is correct? Group of answer choice a.B would receive$12 as the final payment of cash. b. B would receive $10 as the final payment of cash. c. B would receive $8 as the final payment of cash. d. B would receive $20 as the final payment of cash.
- XYZ Partnership begins the liquidation process with the following balance sheet and profit and loss percentages: Cash 280,000 Noncash Assets 300,000 Liabilities 200,000 X Capital (40%) 100,000 Y Capital (30%) 150,000 Z Capital (30%) 130,000 Liquidation expenses are estimated at $50,000. Assume any deficit in a partner’s capital balance will not be repaid. How much is the safe payment that can be made to partner Z (hint: prepare a proposed schedule of liquidation). a. $0 b. $15,000 This is the ans c. $25,000 d. $10,000 i got this e. $5,000Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166Statement I: When a Partnership's operations resulted to a net loss, a partner who contributed legal services, shall have share of loss in accordance to the losses agreement. However, if there is no losses agreement, he shall not be liable to any loss.Statement II: All withdrawals and investments shall be considered when computing for the weighted average capital balance. Group of answer choices S1 is true; S2 is false Both statements are true S1 is false; S2 is true Both statements are false
- What will i do for the liquidation expense stated in the problem related to parnership liquidation installment - cash priority program? Problem: On January 1, 2022, partners Kho, Lagman and Magno decided to liquidate their partnership. Prior to the liquidation, the partnersip had cash of P12,000, non-cash assets of P146,000, liabilities to outsiders of P36,000 and a note payable to Partner Magno of P14,000. The capital balances of the partners were: Kho - P36,000; Lagman-P54,000; Magno-P18,000. The partners share profits and losses in the ratio of 3:3:4,respectively.During January 2022, the partnership received cash of P30,000 from the sale of assets with a book value of P38,000 and paid P3,600 of liquidation expenses. During February, the partnership realized P44,000-from the sale of assets with a book value of P35,000 and paid liquidation expenses of P8,400. During March, the remaining assets were sold for P36,000. The partners agreed to distribute cash at the end of each…In liquidation, balances prior to the distribution of cash to the partners are: Cash P255,000; Moore, Capital P140,000; Simon, Capital P130,000, and Kelly, Capital P30,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Simon if Kelly does not pay his deficiency? -P122,500 -P130,000 -P126,250 -P118,750 the Following are classified under PPE Except? -Building -Land -Machinery -All are PPE Which of the following is considered as a Cash Equivalent? -Check -Postal money Order -Treasury Bill Issued 5 Months Ago , Acquired and Maturing 4 months from now -Treasury Bill Issued 1 year ago Acquired and Maturing 3 months from nowRST partnership begins the liquidation process with the following balance sheet and profit and loss percentages Cash 280,000 Liabilities 200,000 Noncash Assets 300,000 R Capital (40%) 100,000 S Capital (30%) 150,000 T Capital (30%) 130,000 Liquidation expenses are estimated at $50,000. Assume any deficit balance in a partner’s capital account will not be repaid. What is the safe payment that can be made to partner T. answer please
- The firm also has two alternatives to find out the new ratio and sacrificing ratio of the partners areIf A and B are the partners sharing profits and losses in the ratio of 5:3, admitting C for 1/5th shareof future profits in which he acquires 3/16th from A and 1/16th from B and,If A and B are the partners and sharing profits and losses in the ratio of 4:1, admitting C as a newpartner in which he acquires 2/5th of A ’s share and 1/5 of B’s share.Calculate new ratio and sacrificing ratio of the partners and suggest which alternative is good forthe new partner? Comment it.REQUIRED You are required to divide the profit in each of the following situations: a)Profit is shared in the ratio Andy 60% and Brad 40% b) Profits are shared based on the initial capital ratio. c) Profits are shared based on closing balances of capital accounts d) Profits are shared equally between the partnerThe financial position of the partnership Marie, Shey, Allan and Roi, just prior to liquidation shows: Marie, Loan 25,000 Marie, Capital 137,500 Shey, capital 128,750 Allan, capital 171,250 Roi, Capital 112,500 The partners share profits and losses on a 4:3:2:1 ratio, respectively. Certain assets are sold for P150,000 and is distributed to partners. How much cash should Allan receive? Group of answer choices 67,917 0 82,083 150,000