Title | 2 HO Partnership - lklklkl |
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Author | Maangas Ako |
Course | Accounting |
Institution | St. Scholastica's College |
Pages | 3 |
File Size | 52.7 KB |
File Type | |
Total Downloads | 47 |
Total Views | 161 |
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PROBLEM VIII A, T and C are partners. They divide profits and losses 30%, 40% and 30%, respectively. On June 30, 2018 they decided to liquidate their partnership because of continuous losses in operation. The following balances of selected accounts were taken from the books of the partnership on this date: Accounts Receivable – T P24,000 Loans Payable – C 9,600 Loans Payable – A 28,800 A, Capital 118,800 T, Capital 88,800 C, Capital 78,000 On this date, the partnership’s assets were P534,400 excluding the receivables from partner and cash of P28,000. The non-cash assets were sold at 70% of book value. After the realization, the partnership paid all outside creditors and liquidation expenses of P12,000 and distributed the remaining cash to the partners. 1. How much was cash was distributed to the partners? PROBLEM IX The Partnership Tanny, Louie and Corrie is winding up its affairs and submitted the following trial balance at September 30,2017 is given on the other page: Current assets, including cash of P60,000
P420,000
Non-current assets
990,000
Tanny Loan
120,000
Corrie Loan
75,000
Liabilities
P470,000
Louie Loan
70,000
Tanny Capital (50%)
400,000
Louie Capital (30%
400,000
Corrie Capital (20%) Total
265,000 P1,605,000
P1,605,000
The partners were able to complete the liquidation in two months only and all cash available for distribution to partners were distributed at the end of each month. Summary of transaction for the two months follows: a.
65% of the current assets were realized in the 1 st month at 70% of their carrying values while the balance was realized at a loss of P20,000 in the 2nd month.
b.
The non-current assets were realized as follows:
c.
d.
50% was purchased by a competitor at a loss of P95,000 in the 1st month.
10% was taken by Litonjua in the 2 nd month at an agreed amount of P70,000 in partial settlement of her account.
The balance was realized at 80% of its carrying value in the 2nd month.
Liquidation expenses paid:
1st month – P15,000
2nd month – P12,000
Payment liabilities:
1st month – P270,000
2nd month – P200,000
e.
Cash withheld by the partners was P8,000 in the 1st month.
f.
Payment to partners:
1st month - ?
2nd month – P418,800
48. The total loss resulting from the realization of the non-cash assets amounted to:
47. The cash paid to partners at the end of the 1st month amounted to: 48. The amount received by Tadeo, Litonjua and Corrales in the cash distributed at the end of the 1st month? PROBLEM X Julia, Kristine and James divide profits and losses equally. Just prior to liquidating their partnership, their respective account balances were P50,000, P96,000 and P74,000 as of January 31, 2018. Their total assets included cash of P5,000 and loan to Julia for P10,000, while their total liabilities of P90,000 included loan from James for P30,000. The partners agreed to distribute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were realized. After paying liabilities and liquidation expenses of P6,000, the partnership had P140,000 left. 1. How much will Julia receive in the 1st cash distribution?
PROBLEM XI A balance sheet for the partnership of Sanjoe, Bea, and Piolo, who share profits and losses in the ratio 50:25:25, respectively, shows the following balances before liquidation: Cash
P72,000
Other Assets
357,000
Liabilities
120,000
Sanjoe Capital
132,000
Bea Capital
93,000
Piolo Capital
84,000
In the first month of liquidation, certain assets were sold for P192,000. Liquidation expenses of P6,000 were paid, liabilities amounting to P32,400 were paid. The partners distributed the cash available after setting aside enough cash for future liquidation expenses. Sanjoe received P37,500 in the first month. 1. How much cash did the partners set aside for future liquidation expenses?
PROBLEM XII Lawrence, Mary Joy, and Nathaniel, partners in Jewelry Store, decided to liquidate their partnership on March 31, 2018. At this time, the partnership had cash of P315,000, Non-cash assets of P2.1M excluding receivable from one of the partners. They have also substantial liabilities. The partner’s capital balances, loan balances profit/loss percentages are as follows:
Capital
Lawrence
Mary Joy
Nathaniel
P360,000
P285,000
P390,000
(45,000)
(60,000)
25%
25%
Loan (debit) P/L ratio
50%
The transactions for the month of April, May and June are summarized below: April
May
June
Proceeds from realization of non-cash assets: April – BV sold – 70%
P1,360,000
May – BV sold – 20%
P350,000
June – balance
P180,000
Payment of liabilities
840,000
300,000
Liquidation expenses
10,000
12,000
Payment to partners
P160,000
P340,000
51. The total restricted interest in the month of April amounted to: 52. The cash received by Lawrence in the 1st month amounted to: 53. In the month of June, the cash available to partners amounted to:
Paid balance 15,000 All cash left
PROBLEM XIII The following balances are available from the records of LAB Partnership as of March 31, 2018: Cash
?
Non Cash Assets (incl. loan to Ardales of P20,0000) Liabilities
P580,000 200,000
Loan from Basco
40,000
Lachica Capital (30%)
180,000
Ardales Capital (50%)
120,000
Basco Capital (20%)
60,000
The partners decided to liquidate the partnership. they estimated that the non-cash assets will be realized at P300,000 over the next three-months and cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. 1. If Lachica received P10,000 in the 1st settlement, then the total cash distributed to partners amounts to: 2. Assuming Ardales received a total P30,000, how much did Basco receive at this point?
PROBLEM XIV The partnership of Soler, Cayan and Andres (SCA Partnership) has the following account balances before liquidation: Cash Noncash assets Loan to C Receivable from Soler Expenses
P350,000 7,375,000 150,000 20,000 2,230,000
Liabilities P1,125,000 Loan from A 50,000 Soler Capital (40%) 1,250,000 Cayan Capital (40%) 1,900,000 Andres Capital (20%) 1,000,000 Revenues 4,800,000 During October, some assets were sold that resulted to loss of P46,125. Liquidation expenses of P175,000 were paid and additional expenses amounting to P90,000 were expected to be incurred through the following months of liquidation. Outside creditors amounting to P875,000 were paid. In the first settlement to partners, Cyan received P555,550. 1. Compute for the book value of non-cash assets sold. 2. How much did Soler receive in the 1st distribution of cash?
PROBLEM XV The partnership of MAR shows the following balances before liquidation: Cash Noncash assets
P150,000 743,750
Liabilities P250,000 M Capital (50%) 275,000 A Capital (25%) 193,750 R Capital (25%) 175,000 Total P893,7 P893,750 50 Total P893,7 P893,750 50 On the first month of liquidation, 60% of the noncash assets was sold at a loss of P46,250. Liquidation expenses of P12,500 were paid and additional expenses were anticipated. After paying liabilities of P67,500, they decided to distribute whatever cash is available to partners. On the first cash distribution, M received P78,125. 1. What amount of cash withheld in the first month for anticipated expenses?...