Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2018, YoLanDa Partnership entered into liquidation. The partners capital balances on this date were as follows: Yo (25%) P2,500,000; Lan (35%) P5,400,000;

On January 1, 2018, YoLanDa Partnership entered into liquidation. The partners capital balances on this date were as follows: Yo (25%) P2,500,000; Lan (35%) P5,400,000; Da (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from Lan P600,000. Cash on hand before the start of liquidation is P800,000.

With the information given, answer the following independent situations:

Case 1

  1. Noncash assets amounting to P7,400,000 were sold at a book value and the rest of the noncash assets were sold at a loss of P4,200,000. How much cash will be distributed to the partners?

a. P4,400,000

b. P7,400,000

c. P8,000,000

d. P11,800,000

Case 2

  1. After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partners?

a. P3,680,000

b. P3,800,000

c. P4,360,000

d. P4,480,000

Case 3

  1. If Lan received P2,255,000, how much was the loss from the realization of the noncash assets? a.P5,255,000

b. P9,945,000

c. P10,525,000

d. P10,700,000

Please show the solution. thank you.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Night Comes To The Cumberlands A Biography Of A Depressed Area

Authors: Harry M. Caudill

1st Edition

1334682070, 978-1334682070

More Books

Students also viewed these Accounting questions