Solved-Jose-Andres-and-Apo-share-profits-in-the-ratio-50 20-respectively.-Capital-and-loan-balances-just-prior-to-partnership-liquidation-are -C PDF

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School of Advance Business and Commerce, Faisalabad /ACCTG /ACCTG 101 / Jose, Andres and Apo share prots in t...숥 This question has been answeredQuestionTHANK YOU SO MUCHImage transcriptionsE. Jose, Andres and Apo share prots in the ratio 50:30:20, respectively. Capital and loan balances just prior ...

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5/24/2021

[Solved] Jose, Andres and Apo share profits in the ratio 50:20, respectively. Capital and loan balances just prior to partne

School of Advance Business and Commerce, Faisalabad / ACCTG / ACCTG 101 / Jose, Andres and Apo share prots in t…

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E. Jose, Andres and Apo share prots in the ratio 50:30:20, respectively. Capital and loan balances just p liquidation are: CAPITAL LOANS Jose P 120,000 Jose P 45,000 Andres 90,000 Andres 30,000 apo 40, Non-cash assets are sold, and cash is distributed to partners in monthly installments during the course o

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Answered by Expert Tutors 숨 a. We will be using the Schedule of Safe Payments. Under this program, we will be making at the end of each months to the partners until all non-current assets are sold. All non-cas would be treated as if loss in the period they remain unsold. The balance of the capital aft "loss" will be the safe payments. b. See explanation c See explanation

5/24/2021

[Solved] Jose, Andres and Apo share profits in the ratio 50:20, respectively. Capital and loan balances just prior to partne

To plot in our schedule:

To simplify, we have to oset the loans to the capital.

Now we can start our liquidation. January

To compute for the safe payment, we assume that all the non-cash asset unsold is loss as if we sold all assets worth 338,000 for 15,000 only. Then we will allocate the loss of 15,000 = 323,000 based on their P/L ratio. Allocation of loss: Jose = 323,000 x 50% = 161,500 Andres = 323,000 x 30% = 96,900 Apo = 323,000 x 20% = 64,600 After deducting the allocation of loss from sale, we had a negative balance for Apo. W up to a negative balance in the capital, we need to allocate this balance to the other p their P/L ratio. But since 50% +30% does not equal to 100%, we will use their proport denominator of 80%. To allocate Apo's balance of -11,600: Jose = 11,600 x 50/80 = 7,250 Andres = 11,600 x 30/80 = 4,350 After this Jose had a negative balance again, so we allocate the whole amount of 3,750 remaining partner Andres. February

5/24/2021

[Solved] Jose, Andres and Apo share profits in the ratio 50:20, respectively. Capital and loan balances just prior to partne

compute for the safe payments. Safe payments is the payment you make by assuming case scenario that you will not be able to sell the rest of the unsold assets, thus, consid loss if unsold. We now compute for the opening balances by deducting sold assets from the original asset and the safe payments from the capital of our partners. Our opening balance fo 323,000 because we deduct from it all the asset sold in the prior month, and our open for Andres is 105,000 because we deducted from it the safe payment made. Then, just do what you did in the prior month. All unsold assets at the end of February treated as loss. Since our opening balance is 323,000 and we sold 40,000 of it, the re loss. Allocate this loss again using P/L to come up to safe payments to be made. Do this for the rest of the liquidation period. March

April

c. This Statement of Liquidation would be the summary of the liquidation that took place month period of our liquidation. Assets = 338,000

5/24/2021

[Solved] Jose, Andres and Apo share profits in the ratio 50:20, respectively. Capital and loan balances just prior to partne

To check, you can add all the safe payments made and it should total to the respective distribution to the partners. If you have questions, comment below. Hope you learned from this! Have a nice day!

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5/24/2021

[Solved] Jose, Andres and Apo share profits in the ratio 50:20, respectively. Capital and loan balances just prior to partne

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