Please see the attached file. thank you! need answer for my assignment!
Chapter 4 - Partnership Liquidation PRACTICE EXERCISES Supply the answer. On the space provided for each number, write the correct answer. A. C and D are partners with capital balances of P24,500 and P15,500, respectively. They share profits and losses in the ratio of 3:2, respectively. The partners decided to liquidate the partnership. The firm's liabilities amount to P36,000, including P4,000 owing to C and P3,500 owing to D. After realization of assets, the cash on hand amounted to P37,500. How much was the loss on realization? _2 . How much should C and D receive in final settlement of their respective interest? B. D, E, and F are partners with a profit and loss ratio of 5:4:1, respectively The partnership is to be liquidated. Prior to the liquidation, the statement of financial position shows the following balances Cash P 20,000 Other Assets 180,000 Liabilities 20,000 D, Capital 80.000 E, Capital F, Capital 50,000 40,00 After realization, E received P30,000 as settlement of his interest. How much was the loss on the sale of assets? How much did F receive in final settlement of his interest? 5. What amount of total cash was distributed to the partners? The statement of financial position of L, M, and N just before liquidation shows the following Cash P 5,000 Non-cash Assets 60,000 Accounts Payable 10,000 N, Loan 10,000 138 139 Scanned with CamScanner Chapter 4 - Partnership Liquidation Chapter 4 - Partnership Liquidation L, Capital 15,500 Debit Credit M, Capital 22,000 Bruno, Drawing 30,000 N, Capital 7,500 Bruno, Capital 280,000 40,000 L, M, and N share profits and losses in the ratio of 3:2:5, respectively. The Mars, Drawing non-cash assets were sold for P40,000 Mars, Capital 400,000 How much cash is available for distribution to partners in At this time, the records show that the total partnership assets is P910,000, settlement of their capital balances? of which P60,000 is cash. After the non-cash assets were sold and the cash settlement was completed, Mars was trying to figure out why he received How much cash is received by N in full settlement of his total interest in the partnership, including loan? only P66,000. 11. How much was the gain or loss on realization? D. Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, espectively decided to liquidate. The condensed statement of financial 12. How much was the cash settlement to Bruno? position immediately prior to the liquidation shows the following: Cash Nicole, Rio, Ailil and Karen are partners sharing profits in the ratio of 3/21, Non-cash Assets P 100,000 F. 400,000 4/21, 6/21 and 8/21, respectively. Their capital balances are as follows: Liabilities 40,000 Ailil P250,000 E. Loar 10,000 Nicole - P10,000 Rio 250,000 Karen 90,000 E, Capita 45,000 F, Capital G, Capital 105,000 200,000 The partners decide to liquidate. They converted the non-cash assets into P233,000 cash. After paying the liabilities amounting to P30,000, they have After paying liabilities to partnership creditors, cash of P207,500 is P222,000 to divide. Assume that a debit balance of any partner's capital available for distribution to partners. Any capital deficiency is made good account is uncollectible. by the deficient partner, since all three partners are personally solvent. 13. How much was the amount of cash before the conversion How much was the loss on realization? of non-cash assets? How much would F receive in final settlement of his 14. How much was the book value of the non-cash assets? interest? 15. How much was received by Rio in final settlement? 10. How much would G receive in final settlement of his interest? E. Bruno and Mars are partners. They share profits and losses in the ratio of 3:7, respectively. The business has been encountering financial difficulties lately. The partners therefore, mutually agreed to liquidate the business. Immediately before liquidation proceedings started on March 31, 2013, the ledger accounts of the partners showed the following balances
