NAME: SECTION: Problem #11 Lump-Sum Liquidation SCORE: PROFESSOR: Aparece, Bantilles and Lerin have decided to liquidate...

Transcribed Image Text:

NAME: SECTION: Problem #11 Lump-Sum Liquidation SCORE: PROFESSOR: Aparece, Bantilles and Lerin have decided to liquidate their partnership on Dec. 1, 2022. The statement of financial position is shown below: ABL Partnership Statement of Financial Position Dec. 1, 2022 Assetr Cash Accounts Receivable (net) Inventories Property and Equipment (net) - Total Assets Liabilities Liabilities and Capital Accounts Payable Loan Payable-Bantilles Total Liabilities Capital Aparece, Capital Bantilles, Capital Lerin, Capital Total Capital Total Liabilities and Capital Additional information: P 25,000 75,000 100,000 300,000 P500,000 P240,000 30,000 P270,000 P120,000 50,000 60,000 230,000 P500,000 a. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1, 2022, are presented below: Personal assets Personal liabilities Personal net worth Aparece P250,000 (230,000) P 20,000 Bantilles P300,000 (240,000) P 60,000 Lerin P350.000 (325,000) P 25,000 b. Aparece, Bantilles, and Lerin share profits and losses in the ratio 20:40:40, respectively. c. According to the partnership agreement, interest will not accrue on partners' loan balances during the liquidation process. d. All of the non-cash assets were sold on Dec. 10, 2022 for P260,000. Required: Prepare a statement of liquidation. 5-8 Vlio Chapter 4: Liquidation 120 A BUA NAME: SECTION: Problem #11 Lump-Sum Liquidation SCORE: PROFESSOR: Aparece, Bantilles and Lerin have decided to liquidate their partnership on Dec. 1, 2022. The statement of financial position is shown below: ABL Partnership Statement of Financial Position Dec. 1, 2022 Assetr Cash Accounts Receivable (net) Inventories Property and Equipment (net) - Total Assets Liabilities Liabilities and Capital Accounts Payable Loan Payable-Bantilles Total Liabilities Capital Aparece, Capital Bantilles, Capital Lerin, Capital Total Capital Total Liabilities and Capital Additional information: P 25,000 75,000 100,000 300,000 P500,000 P240,000 30,000 P270,000 P120,000 50,000 60,000 230,000 P500,000 a. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1, 2022, are presented below: Personal assets Personal liabilities Personal net worth Aparece P250,000 (230,000) P 20,000 Bantilles P300,000 (240,000) P 60,000 Lerin P350.000 (325,000) P 25,000 b. Aparece, Bantilles, and Lerin share profits and losses in the ratio 20:40:40, respectively. c. According to the partnership agreement, interest will not accrue on partners' loan balances during the liquidation process. d. All of the non-cash assets were sold on Dec. 10, 2022 for P260,000. Required: Prepare a statement of liquidation. 5-8 Vlio Chapter 4: Liquidation 120 A BUA