Use the following information for the next five questions: The partners Athena, Aphrodite, and Hera who shared profit and losses in the ratio of 4:2:2 has decided to dissolve and liquidate their partnership. In the process of liquidation, their non-cash assets of P490,000 was realized at a loss of P340,000. However, they were able to pay their obligations to outside creditors of P105,000. The partner’s equity balance before the start of the liquidation has totaled to P450,000 to P450,000, broken down as follows: (Tip: Prepare a liquidation statement to answer the proceeding questions. Make sure that A=L+PE) Athena -P180,000 Aphrodite - 150,000 Hera - 120,000 10. At what amount were the non-cash assets realized? a. 150,000 c. 200,000 b. 175,000 d. 225,000 11. How much was the cash balance at the beginning of the liquidation process? a. 60,000 c. 70,000 b. 65,000 d. 75,000 12. How much is the cash balance of the company after paying its obligation? a. 320,000 c. 110,000 b. 90,000 d. 215,000 13. How much was received by Athena in the liquidation process? a. 65,000 c. 10,000 b. 35,000 d. some other answer 14. Assuming the non-cash assets were sold for P300,000, how much was the share of Aphrodite in the gain/loss on
Use the following information for the next five questions: The partners Athena, Aphrodite, and Hera who shared profit and losses in the ratio of 4:2:2 has decided to dissolve and liquidate their partnership. In the process of liquidation, their non-cash assets of P490,000 was realized at a loss of P340,000. However, they were able to pay their obligations to outside creditors of P105,000. The partner’s equity balance before the start of the liquidation has totaled to P450,000 to P450,000, broken down as follows: (Tip: Prepare a liquidation statement to answer the proceeding questions. Make sure that A=L+PE) Athena -P180,000 Aphrodite - 150,000 Hera - 120,000 10. At what amount were the non-cash assets realized? a. 150,000 c. 200,000 b. 175,000 d. 225,000 11. How much was the cash balance at the beginning of the liquidation process? a. 60,000 c. 70,000 b. 65,000 d. 75,000 12. How much is the cash balance of the company after paying its obligation? a. 320,000 c. 110,000 b. 90,000 d. 215,000 13. How much was received by Athena in the liquidation process? a. 65,000 c. 10,000 b. 35,000 d. some other answer 14. Assuming the non-cash assets were sold for P300,000, how much was the share of Aphrodite in the gain/loss on
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 27P
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Question
Use the following information for the next five questions:
The partners Athena, Aphrodite, and Hera who shared profit and losses in the ratio of 4:2:2 has decided to dissolve and liquidate their partnership.
In the process of liquidation, their non-cash assets of P490,000 was realized at a loss of P340,000. However, they were able to pay their obligations to outside creditors of P105,000. The partner’s equity balance before the start of the liquidation has totaled to P450,000 to P450,000, broken down as follows: (Tip: Prepare a liquidation statement to answer the proceeding questions. Make sure that A=L+PE)
Athena -P180,000
Aphrodite - 150,000
Hera - 120,000
10. At what amount were the non-cash assets realized?
a. 150,000 c. 200,000
b. 175,000 d. 225,000
11. How much was the cash balance at the beginning of the liquidation process?
a. 60,000 c. 70,000
b. 65,000 d. 75,000
12. How much is the cash balance of the company after paying its obligation?
a. 320,000 c. 110,000
b. 90,000 d. 215,000
13. How much was received by Athena in the liquidation process?
a. 65,000 c. 10,000
b. 35,000 d. some other answer
14. Assuming the non-cash assets were sold for P300,000, how much was the share of Aphrodite in the gain/loss on realization?
a. 47,500 gain c. 47,500 loss
b. 37,500 gain d. 37,500 loss
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