The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS LIABILITIES & CAPITAL Cash 50,000 Liabilities 70,000 Other Assets 140,000 Loan - January 20,000 Loan - July 10,000 January, Capital (50%) 30,000 June, Capital (30%) 50,000 July, Capital (20%) 30,000 Partner January and June are personally insolvent. The percentages in parenthesis are their profit or loss ratio. Situation 1: If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid.Question: How much cash should January, June and July receive? Situation 2: If non cash assets are sold for P50,000 and all liabilities are paid and liquidation expense of P5,000 are also paid.Question: How much cash should January, June and July receive? Situation 3: If July received a total of P80,000:Question: (1) How much cash should January receive? Situation 3: If July received a total of P80,000:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 4: If non cash assets are sold for P40,000 and all liabilities are paid and liquidation expense of P10,000 are also paid.Question: How much should June receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (1) How much cash should July receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (3) How much is the total proceeds on sale of other assets?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 9SPA

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The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS LIABILITIES & CAPITAL Cash 50,000 Liabilities 70,000 Other Assets 140,000 Loan - January 20,000 Loan - July 10,000 January, Capital (50%) 30,000 June, Capital (30%) 50,000 July, Capital (20%) 30,000 Partner January and June are personally insolvent. The percentages in parenthesis are their profit or loss ratio. Situation 1: If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid.Question: How much cash should January, June and July receive? Situation 2: If non cash assets are sold for P50,000 and all liabilities are paid and liquidation expense of P5,000 are also paid.Question: How much cash should January, June and July receive? Situation 3: If July received a total of P80,000:Question: (1) How much cash should January receive? Situation 3: If July received a total of P80,000:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 4: If non cash assets are sold for P40,000 and all liabilities are paid and liquidation expense of P10,000 are also paid.Question: How much should June receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (1) How much cash should July receive? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (2) How much is the amount of gain or loss on realization of other assets? Situation 5: If June received a total of P35,000 and liquidation expense of P5,000 were paid:Question: (3) How much is the total proceeds on sale of other assets?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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