Question
1. The GBE partnership became insolvent on January 1, 2021, and the partnership is being liquidated as soon as practicable. In this respect of the
1. The GBE partnership became insolvent on January 1, 2021, and the partnership is being liquidated as soon as practicable. In this respect of the following information for the partner as follows: Capital balance of: G P70,000, for B (P60,000) and for E (P30,000); Personal assets of G-P80,000, B-P30,000 and E-P70,000; Personal liabilities of G-P40,000, B-P40,000 and E-P30,000. Assume that residual profits and losses are shared equally among the three partners. Based on this information calculate the maximum amount that G can expect to receive from the partnership.
2.
A and B formed a joint operation. The following were the transactions during the year:
| A | B |
Total purchases | 400 | 320 |
Total sales | 480 | 240 |
Expenses paid | 800 |
|
Other income |
| 40 |
The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. On the cash settlement, how much should A received from B?
Note: Please provide a good accounting form for the solution in No. 1 and 2 so that I can understand better. Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started