liquidated, distribution will be made to the partners as soon as there is cash available. Profit and loss sharing ratio is 5:3:2 respectively. The partnership will be liquidated Kuok is the only solvent partner. The following are the activities for the month of June: Sale of non-cash assets having a book value of P120,000 for P90,000 less P2,000 over an estimated period of three months. As the assets are rcalized and liabilities hquidation expenses. One half of the liabilities were paid. Cash withheld for future 14. The Leisure Resort, a health spa, decided to dissolve the partnershin when its financia position showed the following Crodit Debit P 40,0) 210,000 Cash Other Assets Accounts Payable Kuok, Capital Tong, Capital Lau, Capital P 60,000 48,000 72,000 70,000 P250,000 P250,000 ouidation proccedings was estimated at P3,000 Direction: a) Prepare a statement of liquidation b) Support with a schedule of safe payment considering. 1 Partners' interests (capital plus loan balance) 2. Computation of restricted interest for potential loss of remaining non- cash assets and the future liquidation expenses. 3. Computation of restricted interest for potential loss for partner(s)" capital deficiency, if any. 4. Free interest should be equal to the cash available for distribution. - To continue with Excercise 14, the following transactions took place for July and August: July - Sale of half of the remaining other assets at a loss of P8,000. Liquidation expenses paid, P2,000. Remaining liabilities paid Partners paid with the cash available except for P2,000 reserve for future liquidation expenses. Aug- Sale of the remaining other assets at a gain of P5,000. Liquidation expenses paid amounted to P3,000. Final distribution made to the paruners. Direcnion: Start with the June 30 balances of the statement of liquidation in Exercise 14, and fill up the statement of liquidation for July and August. Support with a schedule of safe payment, if necessary.
liquidated, distribution will be made to the partners as soon as there is cash available. Profit and loss sharing ratio is 5:3:2 respectively. The partnership will be liquidated Kuok is the only solvent partner. The following are the activities for the month of June: Sale of non-cash assets having a book value of P120,000 for P90,000 less P2,000 over an estimated period of three months. As the assets are rcalized and liabilities hquidation expenses. One half of the liabilities were paid. Cash withheld for future 14. The Leisure Resort, a health spa, decided to dissolve the partnershin when its financia position showed the following Crodit Debit P 40,0) 210,000 Cash Other Assets Accounts Payable Kuok, Capital Tong, Capital Lau, Capital P 60,000 48,000 72,000 70,000 P250,000 P250,000 ouidation proccedings was estimated at P3,000 Direction: a) Prepare a statement of liquidation b) Support with a schedule of safe payment considering. 1 Partners' interests (capital plus loan balance) 2. Computation of restricted interest for potential loss of remaining non- cash assets and the future liquidation expenses. 3. Computation of restricted interest for potential loss for partner(s)" capital deficiency, if any. 4. Free interest should be equal to the cash available for distribution. - To continue with Excercise 14, the following transactions took place for July and August: July - Sale of half of the remaining other assets at a loss of P8,000. Liquidation expenses paid, P2,000. Remaining liabilities paid Partners paid with the cash available except for P2,000 reserve for future liquidation expenses. Aug- Sale of the remaining other assets at a gain of P5,000. Liquidation expenses paid amounted to P3,000. Final distribution made to the paruners. Direcnion: Start with the June 30 balances of the statement of liquidation in Exercise 14, and fill up the statement of liquidation for July and August. Support with a schedule of safe payment, if necessary.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 14E
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Transcribed Image Text:Profit and loss sharing ratio is 5:3:2 respectively. The partnership will be liquidated
Sale of non-cash assets having a book value of P120,000 for P90,000 less P2,000
over an estimated period of three months. As the assets are realized and liabilities
Kuok is the only solvent partner. The following are the activities for the month of June:
laquidated, distribution will be made to the partners as soon as there is cash available.
hquidation expenses. One half of the liabilities were paid. Cash withheld for future
14. The Leisure Resort, a health spa, decided to dissolve the partnership when its financial
position showed the following
Credit
Debit
P 40,0)
210,000
Cash
Other Assets
Accounts Payable
Kuok, Capital
Tong, Capital
Lau, Capital
P 60,000
48,000
72,000
70,000
P250,000
P250,000
liquidation proccedings was estimated at P3,000
b) Support with a schedule of safe payment considering.
1 Partners' interests (capital plus loan balance)
2. Computation of restricted interest for potential loss of remaining non-
cash assets and the future liquidation expenses.
3. Computation of restricted interest for potential loss for partner(s)
capital deficiency, if any.
4. Free interest should be equal to the cash available for distribution.
- To continue with Exercise 14, the following transactions took place for July and August
July-Sale of half of the remaining other assets at a loss of PS,000.
Liquidation expenses paid, P2,000.
Remaining liabilities paid.
Partners paid with the cash available except for P2,000 reserve for future
liquidation expenses.
Aug - Sale of the remaining other assets at a gain of P5,000.
Liquidation expenses paid amounted to P3,000.
Final distribution made to the paruners.
Direction: Start with the June 30 balances of the statement of liquidation in Exercise 14,
and fill up the statement of liquidation for July and August. Support with a
schedule of safe payment, if necessary.
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