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for exercise number 1, how much is the settlement to mary? 2. for exercise number 1, how much is the settlement to helga? 3. for exercise number 1, how much is the settlement to luz?

for exercise number 1, how much is the settlement to mary? 2. for exercise number 1, how much is the settlement to helga? 3. for exercise number 1, how much is the settlement to luz?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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1. for exercise number 1, how much is the settlement to mary?

2. for exercise number 1, how much is the settlement to helga?

3. for exercise number 1, how much is the settlement to luz?

4. for exercise number 2, how much is the settlement to luz?

5. for exercise number 2, how much is the settlement to mary?

6. for exercise number 2, how much is the settlement to helga?

7. for exercise number 3, how much is the settlement to luz?

8. for exercise number 3, how much is the settlement to mary?

9. for exercise number 3, how much is the settlement to helga?

 

 

 

1. Mary, Helga and Luz are partners who share profits and losses in the ratio of 4:2:2, respectively. The partners decide to liquidate and gave you the following balances: Cash P400,000 Accounts Payable P300,000 Accounts 200,000 Notes Payable 400,000 Receivables Mary, Capital Helga, Capital Luz, Capital Inventories 800,000 700.000 Equipment 700,000 400,000 Accumulated (100,000) 200,000 Depreciation a. Accounts Receivable were sold for P175,000 b. Inventories were sold for P820,000 c. Equipment were sold for P550,000 d. Liquidation expenses of P12,000 were paid Direction: A. Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Mary P400,000 P700,000 P400,000 P200,000 Cash Helga Luz | Balances befor liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners B. Journalize: a.) each sale; b.) liquidation expenses paid; c.) liabilities paid; and d.) cash paid to partners 2. Using the data in number 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: A. Prepare a statement of liquidation B. Journalize a.) sale of non-cash assets; b.) payment of liquidation expenses; c.) payment of the liabilities; d.) deficient partner makes additional investment; e.) distribution of remaining cash to the appropriate partners. 3. Using the data in number 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses, Assume all partners are insolvent A. Prepare a statment of liquidation. B. Journalize a.) sale of the other assets and distribution of loss including the liquidation expenses; b.) payment of liabilities; c.) deficiency, if any, absorbed by other partner(s) and d.) distribution of remaining cash to appropriate partner(s).
Transcribed Image Text:1. Mary, Helga and Luz are partners who share profits and losses in the ratio of 4:2:2, respectively. The partners decide to liquidate and gave you the following balances: Cash P400,000 Accounts Payable P300,000 Accounts 200,000 Notes Payable 400,000 Receivables Mary, Capital Helga, Capital Luz, Capital Inventories 800,000 700.000 Equipment 700,000 400,000 Accumulated (100,000) 200,000 Depreciation a. Accounts Receivable were sold for P175,000 b. Inventories were sold for P820,000 c. Equipment were sold for P550,000 d. Liquidation expenses of P12,000 were paid Direction: A. Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Mary P400,000 P700,000 P400,000 P200,000 Cash Helga Luz | Balances befor liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners B. Journalize: a.) each sale; b.) liquidation expenses paid; c.) liabilities paid; and d.) cash paid to partners 2. Using the data in number 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: A. Prepare a statement of liquidation B. Journalize a.) sale of non-cash assets; b.) payment of liquidation expenses; c.) payment of the liabilities; d.) deficient partner makes additional investment; e.) distribution of remaining cash to the appropriate partners. 3. Using the data in number 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses, Assume all partners are insolvent A. Prepare a statment of liquidation. B. Journalize a.) sale of the other assets and distribution of loss including the liquidation expenses; b.) payment of liabilities; c.) deficiency, if any, absorbed by other partner(s) and d.) distribution of remaining cash to appropriate partner(s).
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