Bong, Dong, and Tong are business partners sharing profits and losses 55%, 15%, and 30%, respectively. The company is facing cash flow problems so the partners decided to liquidate. When liquidation commenced, Bong, Dong, and Tong had capital balances amounting to P108,000, P62,000, and P56,000, respectively. Non-cash assets with cost and accumulated depreciation of P390,000 and P140,000, respectively, were sold for P180,000, while liabilities amounting to P112,000 were settled. What was Bong's capital account balance immediately before cash distribution?
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- When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. the accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's Capital, P142,000; and Dalmacio's Capital, P108,000. Because of the highly speacialized nature of the non cash assets, the liquidator anticipated that considerable time would be required to dispose them. the expenses of the liquidating business (advertising, rent, travel, etc) are estimated at P20,000Determine the amoint of cash that can be distributed safely to each partner using the Safe Cash Distribution Method.ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of $35,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $5,000, $8,000, and $2,000, respectively. The partners share a profit and loss ratio of 1:1:3. The noncash assets were sold for $60,000. Any capital deficiencies are resolved by a cash contribution by the deficient partner. Complete the liquidation chart below. Statement of Partnership Liquidation Cash Noncash Assets Liabilities Capital Adrian Batch Crenshaw Balances before realization Sale of assets and division of loss or gain Balances after realization Payment of liabilities Balances after payment of liabilities Receipt of deficiency Balances Cash distributed to partners…Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Carney, capital $ 79,000 Pierce, capital 32,700 Menton, capital 62,000 Hoehn, capital 25,700 Which of the following statements is true? (1)Carney will collect a portion of any available cash before Hoehn receives money. (2)The first available $7,700 will go to Hoehn. (3)The first available $10,600 will go to Manton. (4) Carney will be the last partner to receive any available cash.
- ABC Corporation currently has $7,000 in cash, $15,000 in noncash assets, and liabilities of $8,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $8,000, $2,000, and $4,000, respectively. The partners share a profit and loss ratio of 3:2:1. The noncash assets were sold for $3,000. Any capital deficiencies are absorbed by the remaining partners. Complete the liquidation chart below.Slick, Tony and Sam partnership began the process of liquidation with the following account balances: Cash 16,000 Non-cash assets 434,000 Liabilities 150,000 Slick, Capital (30%) 80,000 Tony, Capital (20%) 90,000 Sam, Capital (50%) 130,000 Liquidation expenses are expected to be P12,000. After the liquidation expenses of P12,000 had been paid and the non-cash assets sold, Sam had a deficit of P8,000. Assuming all partners are personally insolvent, how much is the final settlement to Tony? P24,000 P34,800 P36,000 P37,200Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of 5:3:2. On June 30, 2014, they decided to liquidate the business. The statement of financial position at that date is as follows: Cash P 20,000 Liabilities P 30,000 Orian, Loan 15,000 Tejero, Loan 10,000 Non-cash Assets 135,000 Orian, Capital 80,000 Tejero, Capital 36,000 Lacson, Capital 14,000 Total Assets • P170,000 Total Equities P170,000 The non-cash assets are sold for P95,000. Rather than require payments, all partners agreed to offset the receivable from Orian against his capital credit. Required: 1. Prepare a statement of liquidation. 2. Prepare the journal entries to account for the liquidation.
- PP, GG, and RR are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from the partnership.Required: Assuming that revaluation increase and decrease was agreed by all partners recognized, prepare:1. the journal entry/ies to record the revaluation of assets.2. the journal entry to record GG’s withdrawal.Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Carney, capital $ 67,000 Pierce, capital 29,100 Menton, capital 50,000 Hoehn, capital 22,100 Which of the following statements is true? Multiple Choice Carney will collect a portion of any available cash before Hoehn receives money. Carney will be the last partner to receive any available cash. The first available $4,100 will go to Hoehn. The first available $5,800 will go to Menton.Partners Nina, Ricci, and Guess, who share profit and losses in the ratio of 2:2:1, respectively, decided to liquidate. The condensed statement of financial position account balances just prior to the liquidation are: Cash-P 100,000; Other assets-P 400,000; Liabilities - P 140.000: Nina, Loan-P 10,000; Nina, Capital-P45,000: Ricci, Capital -P 105.000; Guess, Capital - P200,000. After paying the llabilities to partnership creditors, cash of P207,500 is available for distribution to partners. Any capital deficiency is made good by the deficient partner, since all three partners are personally solvent. how much would Nina receive in the final settlement of his interest? how much would Guess receive in the final settlement of his interest?
- Partners Nina, Ricci, and Guess, who share profit and losses in the ratio of 2:2:1, respectively, decided to liquidate. The condensed statement of financial position account balances just prior to the liquidation are: Cash-P 100,000; Other assets-P 400,000; Liabilities - P 140.000: Nina, Loan-P 10,000; Nina, Capital-P45,000: Ricci, Capital -P 105.000; Guess, Capital - P200,000. After paying the llabilities to partnership creditors, cash of P207,500 is available for distribution to partners. Any capital deficiency is made good by the deficient partner, since all three partners are personally solvent. How much was the loss on realization? how much would Nina receive in the final settlement of his interest? how much would Ricci receive in the final settlement of his interest?The partners Melchor Bombero, Felipe Niza, and Doris Pateño who shared profit and losses in the ratio of 4:2:2, has decided to dissolve and liquidate their partnership.In the process of liquidation, their non-cash assets of P490,000 was realized at a loss of P340,000. however, they were able to pay their obligations to outside creditors of P105,000. the partner’s equity balance before the start of liquidation has totaled to P450,000, broken down as follows: Bombero P180,000; Niza P150,000 Pateño P120,000. At what amount were the non-cash assets realized and how much was the cash balance at the beginning of the liquidation process?Kaede, Itona, and Ritsu are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Itona decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. Kaede and Ritsu then agreed to pay Itona P230,000 for his withdrawal from the partnership. Prepare the journal entry to record Itona’s withdrawal under the Bonus method, assuming the revaluation increase or decrease was agreed by all partners to be recognized. Asset revaluation method.