The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. P 150,000 200,000 400,000 700,000 50,000 Cash Accounts receivable -net Inventory Plant Assets - net Loan to South P 500,000 100,000 Liabilities West, Loan North, Capital South, Capital West, Capital 450,000 300,000 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: a) Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed. b) Assuming that a total amount of P 75,000 is available for distribution to partners after liabilities to outside creditors have been paid, show how the cash will be distributed to the partners.

The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. P 150,000 200,000 400,000 700,000 50,000 Cash Accounts receivable -net Inventory Plant Assets - net Loan to South P 500,000 100,000 Liabilities West, Loan North, Capital South, Capital West, Capital 450,000 300,000 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: a) Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed. b) Assuming that a total amount of P 75,000 is available for distribution to partners after liabilities to outside creditors have been paid, show how the cash will be distributed to the partners.

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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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed. Assuming that a total…
A. The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. Cash P 150,000 Accounts receivable -net 200,000 Inventory 400,000 Plant Assets - net 700,000 Loan to South 50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: a) Assuming that P…
The statement of financial position of A, B, C partnership as of December 31, 2020 is presented below: CASH P50,000 OTHER ASSETS 300,000 RECEIVABLE FROM B 10,000 TOTAL P360,000 LIABILITIES P80,000 A, LOAN 20,000 A, CAPITAL 120,000 B, CAPITAL 90,000 C, CAPITAL 50,000 TOTAL P360,000 Profits and loss ratio is 30%, 50% and 20% for A, B and C, respectively. Other assets were realized as follows: DATE CASH RECEIVED BOOK VALUE JAN. 2020 90,000 P120,000 FEB. 2020 P100,000 P80,000 MAR. 2020 125,000 P100,000 Liquidation expenses paid are as follows: January - P3,000 February - P5,000 Cash is distributed as assets are realized; how much is the total cash received by partner A at the end of the liquidation?
The statement of financial position of A, B, C partnership as of December 31, 2020 is presented below: CASH P50,000 LIABILITIES P80,000 OTHER ASSETS 300,000 A, LOAN 20,000 RECEIVABLE FROM B 10,000 A, CAPITAL 120,000 B, CAPITAL 90,000 C, CAPITAL 50,000 TOTAL P360,000 TOTAL P360,000 Profits and loss ratio is 30%, 50% and 20% for A, B and C, respectively. Other assets were realized as follows: DATE CASH RECEIVED BOOK VALUE JAN. 2020 90,000 P120,000 FEB. 2020 100,000 P80,000 MAR. 2020 125,000 P100,000 Liquidation expenses paid are as follows: January – P3,000February – P5,000 Cash is distributed as assets are realized; how much is the total cash received by partner A at the end of the liquidation?
The accounts of the partnership of TJ, SR and MD at the end of its fiscal year on October 31, 2021 are as follows: Liabilities P150,OOO Cash 45,000 MD, Loan 30,000 Non-Cash Assets 390,000 TJ, Capital (30%) 135,000 Loan to SR 15,000 SR, capital (50%) 90,000 MD, capital (20%) 45,000 3. If MD received 27,000 on the first distribution of cash, what was the amount of cash realized from the initial sale of assets? 4. If 55,000 is available for distribution to partners after all non-partner liabilities are paid, how much should TJ have received? 5. If in the first distribution, SR received 11,250, how much should MD have received at that point? 6. If in the first distribution, MD received P52,500, how much is the total cash distributed to partners?
As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: MM AA Cash P 15,000 P 38,000 Accounts Receivable 680,000 255,000 Allowance for doubtful accounts (140,000) (30,000) Merchandise Inventory - 202,000 Machinery and Equipment 150,000 270,000 Total P705,000 P735,000 Accounts Payable 135,000 240,000 MM, capital 570,000 AA, capital - 495,000 Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that ofAA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM andP40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
The statement of financial position of A,B,C partnership as of December 31, 2020 is presented below: CASH P20,000 LIABILITIES 50,000 OTHER ASSETS 280,000 A, LOAN 25,000 A, CAPITAL 125,000 B, CAPITAL 70,000 C, CAPITAL 30,000 TOTAL 300,00 TOTAL 300,000 Profit and loss ratio is 3:2:1 for A, B and C respectively. Other assets were realized as follows: DATE CASH RECEIVED BOOK VALUE JAN 2020 60,000 90,000 FEB 2020 35,000 77,000 MAR 20220 125,000 113,000 Liquidation expenses paid are as follows: January - P500 February - P700 Cash is distributed as assets are realized, how much is the total cash received by partner A?
As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash Accounts Receivable Allowance for doubtful accounts Merchandise Inventory Machinery and Equipment Total P705,000 MM AA P 38,000 255,000 (30,000) 202,000 270,000 P735,000 240,000 495,000 P735,000 P 15,000 680,000 (140,000) - 150,000 Accounts Payable MM, capital AA, capital Total P705,000 135,000 570,000 - The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of 60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
The partnership of X and Y was formed on June 1, 2021. At that date the following assets were contributed: Cash Merchandise inventory 250,000 4,500,000 Building Furniture and equipment P150,000 550,000 Building is subject to a mortgage loan of P1,500,000 which is to be assumed by the partnership. Partnership agreement provides that X and Y on profit and loss of 25% and 75 % respectively. How much is the total assets of the partnership of Y?
The equal DEF partnership has the following balance sheet:Cash and other assets $400,000Recourse liabilities $100,000Capital – D $100,000Capital – E $100,000Capital – F $100,000The profits and losses are allocated 40% to D, and 30% each to E and F. Under thepartnership agreement there is a capital account deficit restoration provision. Howshould the liability be allocated?
TOPIC: INSTALLMENT LIQUIDATIONA.The assets and equities of the NSW Partnership at the end of its fiscal year, October 31, 2020, are as follows: Profit and loss agreement is 30:50:20. CashP 150,000 Accounts receivable -net200,000 Inventory400,000 Plant Assets - net700,000 Loan to South50,000 Liabilities P 500,000 West, Loan 100,000 North, Capital 450,000 South, Capital 300,000 West, Capital 150,000 The partners decide to liquidate the partnership. They estimate that the non-cash assets other than the loan to South can be realized into P 1,000,000 over the two-month period ending December 31, 2020. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Required: 1. Assuming that P 650,000 is available for the first distribution, show how the available cash would be distributed.2. Assuming that a total amount of P 75,000 is available for distribution to partners after liabilities to outside creditors have…