Ideu, thed. P3,200b. Р3,920C.P4,500d. P17,80042.liquidate. All assets of the partnershipjust prior to liquidation follows:were liquidated. The condemsed statement of financial positionAssetsCashOther assetsliabilities and capitalP140, 00010, 00045, 000105, 000200, 000P500,000P100, 000liabilitiesMatias, loanMatias, capitalPagayanon, capitalPescasiosa, capitalTotal400, 000TotalP500, 000Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminatethe partnership's business thus, necessitating distribution of cash to partners and in case of capitaldeficiency, contribution of additional cash. The three partners were all solvent and could answer anycapital deficiency.Name the partner and give the corresponding additional cash he had to invest due to his net capitaldeficiency to finally settle to the liquidation of the partnership.Pagayanon, P44,000b Pescasiosa, P30, 500Matias, P16,000Matias, P6,000aC

Liquidation is the process which is an act of terminating the business whether the business is a…

Answered: Name the partner and give the…

Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Before 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. 166,166
Prior to liquidation, the capitals are reported with the following balances: Partners Capitals P/L Ratio Alaska P160,000 1/3 Bilasa 290,000 2/3 The total liabilities of the partnership amount to P150,000, and all assets available are noncash assets were realized at P540,000. The cash distribution to Alaska and Bilasa respectively would be A. P130,000 P260,000 B. P190,000 P350,000 C. P135,000 P270,000 D. P140,000 P250,000 As of December 31, 2022, the books of AME Partnership showed capital balances of A, P40,000; M, P25,000; E P50,000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in distribution of the P28,000 cash would be: A. P18,000 B. P0…
The following are the account balances as of June 30, 2022 of JPP Partnership just before liquidation:Cash - 100000Inventory - 600000Furniture - 200000Equipment - 400000Accounts Payable - 200000Loans from Pedro - 200000Juan, capital - 20% - 300000Pedro, capital -35% - 310000Pablo, capital - 45% - 280000The following events occurred thereafter:Jul 1 - Equipment was sold for P380,000Jul 15 - Furniture was sold for P 210,000Jul 30 - Inventory with book value of P500,000 was sold for P200,000Aug 15 - Remaining inventory was sold for P 80,000a. Prepare a liquidation report.b. Prepare a cash distribution report/computation for safe payment for each time the partnership will be paying off the partners.c. Prepare a cash priority program and show how it can be used to settle the partner’s equity balances.d. Indicate on the space provided the total cash each partner would receive.
The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4…
19. Following is the balance sheet of the WXYZ Partnership at March 31, 2021, when the partnership isto be liquidated: Cash – P6,000; Other Assets – P126,000; Liabilities – P12,400; W, Loan – P12,000; X, Loan– P14,400; Z, Loan – P9,600; W, Capital (25%) – P16,200; X, Capital (25%) – P12,000; Y, Capital (25%)– P37,700; Z, Capital (25%) – P17,700. During the month of April 2021, assets having book value ofP18,000 are sold at a loss of P2,400. Liquidation expenses of P600 are paid as well as P7,200 of theliabilities. Of the liabilities shown in the balance sheet, P240 represents salary payable to Z and P160represents salary payable to Y. On April 30, 2021, how much cash will be distributed to the partners? a. W – 0; X – 0; Y – 0; Z – P9,000b. W – P1,950; X – P1,950; Y – P1,950; Z – P1,950c. W – 0; X – 0; Y – 0; Z – P1,950d. W – 0; X – 0; Y – P9,000; Z – 0
The statement of financial position for the partnership of AA, BB and CC who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000 Other assets 59,500 Liabilities 49,000 AA, capital 22,000 BB, capital 15,500 CC, capital (15,000) On the first instalment of the liquidation, a gain of P8,525 was realized from the sale of certain assets. Liquidation expenses of P1,000 was paid, and additional liquidation expenses are anticipated. Liabilities paid amounted to P34,000. Remaining book value of other assets is P1,550. On the first payment to partners, AA receives P6,250. How much is the amount of cash withheld for anticipated liquidation expenses and unpaid liabilities?
On January 1, 2009, partners AAA, BBB and CCC, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership’s condensed balance sheet was as follows:Cash P 50,000Other assets 250,000P 300,000Liabilities P 60,000AAA, capital 80,000CCC, capital 90,000BBB, capital 70,000Total P 300,000 On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner?AAA BBB CCC P 15,000 P 51,000 P 44,00040,000 45,000 35,00055,000 33,000 22,00060,000 36,000 24,000
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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash . . . . . . . . . . . . . . . . . . . $ 60,000 Liabilities . . . . . . . . . . . . . . .. $ 40,000Noncash assets . . . . . . . . . 219,000 Frick, capital (60%) . . . . . . . . 129,000Wilson, capital (20%) . . . . . . . 35,000Clarke, capital (20%) . . . . . . . .75,000 Part APrepare a predistribution plan for this partnership.Part BThe following transactions occur in liquidating this business:1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation.2. Sold noncash assets with a book value of $94,000 for $60,000.3. Paid all liabilities.4. Distributed cash based on safe capital balances again.5. Sold remaining noncash assets for $51,000.6. Paid actual liquidation expenses of $6,000 only.7.…
2. The following condensed balance sheet is presented for the partnership of Joseph and Emman, whoshare profits and losses in the ratio of 60:40, respectively:Other Assets P500,000Emman, loan 20,000Total P520,000Accounts Payable P120,000Joseph, Capital 220,000Emman, Capital 180,000Total P520,000The partners decided to liquidate the partnership. If the assets are sold for P345,000, what amount ofthe available cash should be distributed to Emman? Show your solution.
A, drawing (debit balance) P 24,000 A, capital P 123,000 B, drawing (debit balance) 9,000 B, capital 100,500 C, loan 30,000 C, capital 108,000 Total assets amounted to P 478,500, including P 52,500 cash, and liabilities totaled P 150,000. The partnership was liquidated on December 31, 2020, and B received P 83,250 cash pursuant to the liquidation. A, B, and C share net income and losses in a 5:3:2 ratio respectively. How much should A receive upon liquidation of the partnership?
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided thefollowing data with profit or loss ratio of 1:6:3:Current Assets P2,600,000 Total Liabilities P600,000Noncurrent Assets 4,000,000 A, Capital 2,800,000B, Capital 1,400,000C, Capital 1,800,000 On January 1, 2031, D is admitted to the partnership by investing P2,000,000 to the partnership for 20% capital interest. If an existing asset of ABC partnership is not properly valued, what is the capital balanceof B after the admission of D?a. P1,640,000b. P2,600,000c. P1,920,000d. P1,560,000