Read and analyze the following problem and answer the questions asked. Show your computations. Cash P0 Non-Cash assets 85,000 Total Assets P 85,000 Liabilities 25,000 Loan payable to Partner F 11,000 Loan payable to Partner G 16,000 F, Capital (60% in P/L) 21,000 G, Capital (40% in P/L) 12,000 Total Liabilities and Equity P 85,000 Case # 1: Lump-sum liquidation All the non-cash assets are sold for P53,000. Case # 2: Installment Liquidation The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for P46,000. Case # 3: Installment Liquidation The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, 90% of the non-cash assets are sold for P60,000. 1. Under Case # 1: how much is the amount distributable to F? a. P13,800 b. P12,800 c. P14,800 d. P15,800
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Read and analyze the following problem and answer the questions asked. Show your computations.
Cash P0
Non-Cash assets 85,000
Total Assets P 85,000
Liabilities 25,000
Loan payable to Partner F 11,000
Loan payable to Partner G 16,000
F, Capital (60% in P/L) 21,000
G, Capital (40% in P/L) 12,000
Total Liabilities and Equity P 85,000
Case # 1: Lump-sum liquidation
All the non-cash assets are sold for P53,000.
Case # 2: Installment Liquidation
The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as
cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for P46,000.
Case # 3: Installment Liquidation
The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as
cash becomes available. In the first sale, 90% of the non-cash assets are sold for P60,000.
1. Under Case # 1: how much is the amount distributable to F?
a. P13,800
b. P12,800
c. P14,800
d. P15,800
2. Under Case # 1: how much is the amount distributable to G?
a. P16,200
b. P13,200
c. P15,200
d. P15,800
3. Under Case # 2: how much is the amount distributable to F after the 1st sale?
a. P8,600
b. P12,400
c. P21,000
d. P9,600
4. Under Case # 2: how much is the amount distributable to G after the 1st sale?
a. P8,600
b. P12,400
c. P21,000
d. P9,600
5. Under Case # 3: how much is the amount distributable to F after the 1st sale?
a. P17, 000
b. P18,000
c. P35,000
d. P19,100
6. Under Case # 3: how much is the amount distributable to G after the 1st sale?
a. P17, 000
b. P18,000
c. P35,000
d. P19,100
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