Prior to liquidation, the partners’ capital balances are reported as follows: ARIANA - Capital, ₱210,000, P&L Ratio, 1/4; GRANDE - Capital, ₱240,000, P&L Ratio, 3/4. The total liabilities of the partnership amount to ₱200,000, and all assets available are non-cash assets which were realized at ₱500,000. The cash distribution to partners would be:
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Prior to liquidation, the partners’ capital balances are reported as follows: ARIANA - Capital, ₱210,000, P&L Ratio, 1/4; GRANDE - Capital, ₱240,000, P&L Ratio, 3/4. The total liabilities of the
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- A condensed balance sheet for a partnership to be liquidated is as follows:(attached)The profit and loss percentages for Partners A, B, and C are 50%, 30%, and 20%, respectively. For each of the following independent scenarios, determine how much of the available cash, with the exception of $10,000, would be distributed to Partner B.1. Assume that the receivables and the inventory were liquidated for $140,000 cash.2. Assume that all noncash assets other than equipment were sold for $53,000 cash.3. Assume that noncash assets with a book value of $300,000 were sold for $250,000 cash and that a distribution to Partner A was made in order to pay off the loan payable to them.A and G executed a partnership agreement that lists the following assets contributed at the partnership's formation: A-cash, P22,000 and Furniture and Equipment P12,000: B-cash, P32,000 Inventory, P17,000 Building, P42.000, The building is subject to a mortgage of P8,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for A at the formation of the partnership?The laon and capital account balances of Santiago, Gorospe, Esparaguera and Rozales were as follows on September 25, 2021, the date that the partnership began liquidation: Debit Credit Loan Receivable – Esparaguera P10,000 Loan Payable – Santiago P20,000 Santiago, Capital 50,000 Gorospe., Capital 25,000 Esparaguera, Capital 70,000 Ronzales, Capital 50,000 Partnership liabilities totaled P80,000 on September 25, 2021. The partners shared profits and losses and realization gains and losses as follows: Santiago, 20%; Gorospe, 25%, Esparaguera, 30% and Ronzales, 25%. (1)Prepare a cash priority program.
- If the total cash available for distribution to the partners as settlement of their claims in the partnership was P278,000, for how much were the non-cash assets sold?Assume that a partnership had assets with a book value of $240,000 and a market value of $195,000, outside liabilities of $70,000, loans payable to partner Able of $20,000, and capital balances for partners Able, Baker, and Chapman of $70,000, $30,000, and $50,000. How would Able receive upon liquidation of the partnership assuming profitsand losses are allocated equally?As of December 31, 2021, the books of GOV Partnership showed the following balances: G – P400,000; O – P250,000; V – P50,000; Liabilities – P500,000; Cash – P55,000. The noncash assets include Accounts Receivable – V for P20,000. The partners share profits and losses in the ratio of 3:1:2. The partners decided to liquidate by installment after unfavorable results of operation for the last three years. Before the liquidation starts, the bookkeeper discovered unpaid bills amounting to P15,000 they scheduled payment immediately. In the first month, 50% of the noncash assets were realized for P500,000. Liquidation expenses of P10,000 and P350,000 of liabilities were paid. At the end of the first month, the available cash was paid to partners after setting aside P5,000 for contingencies. How much cash was available to partners?
- A enters a partnership by contributing the following: . Cash P2,000,000. • Accounts Receivable P400,000; • Land costs P240,000, P400,000 fair market value with an agreed value of P350,000; and Accounts Payable P160,000. The partnership assumed that 10% of Accounts Receivable is deemed uncollectible. Compute the adjusted capital account of A after the formation.X and Y are partners with capital account balances of P 600,000 each and share profits and loss equally Z is allowed to purchase of the interest of X by paying P 200,000. The partners further agreed to record asset revaluation before the admission of Z. By how much would the new partnership net assets change as the result of asset revaluation? Place a parenthesis if your answer is decreaseThe balance sheet as of July 31, 2018 for the partnership of X, Y, and Z show the following information: Total assets (at cost) P450,000 Loan from X 25,000 X, Capital 108,000 Y, Capital 113,000 Z, Caprtal 204,000 It was agreed among partners that X retires from the partnership and it was further agreed that the assets be adjusted to their fair values of P392,000 as of July 31,2018. The partnership would pay X P100,000 cash plus a non-cash asset with a fair value of P12,000 for X's partnership interests. No goodwill is to be recorded. X, Y, and Z share profits and losses: 20%, 20%, and 60%, respectively. How much is the bonus to or from X?
- The partnership which is being liquidated by installment method has a final cash balance of P100,000 after selling all the non-cash assets. The Profit and Loss ratio is 5:3:2. Partners' capital accounts are as follow: A, Capital - P70,000; B, Capital - P40,000; C, Capital - (P10,000). C is already insolvent. What is the distribution of cash to all the partners? a.) A - P33,333 B - P33,333 C - P33,333 b.) A - P50,000; B - P30,000; C - P20,000 c.) A - P50,000; B - P50,000; C - None d.) A - P63,750 B - P36,250 C - None SHOW COMPLETE SOLUTIONSam, Lam, Lim are partners with a capital investment of P20,000-P30,000- P40,000 respectively. On December 31 2019 after a year of operation, the partnership made a net profit of P80,000. Required: Compute for the division of net profit under each of the enumerated methods of dividing profit and losses. Give the journal entry to close the net profit to capital accounts under each method. 1. Ratio of partner's capital at the beginning of period 2. Interest of 12% allowed on partners capital equity and the balance divided equally 3. Salaries of Sam is P600, Lam P700 and Lim P800 for each partner and the balance is divided equallyThe Balance Sheet of the equal Delana Partnership on August 31, 2023 is as follows: Cash (Adjusted Basis-$240,000; Fair Market Value-$240,000 Unrealized Receivables (Adjusted Basis-$-0; Fair Market Value - $120,000); Capital Assets (Adjusted Basis-$330,000; Fair Market Value $510,000) (Total Assets: (Adjusted Basis-$570,000; Fair Market Value $870,000); Notes Payable (Adjusted Basis $180,000; Fair Market Value-$180,000); Capital Accounts: Rochelle Capital (Adjusted Basis-$130,000; Fair Market Value - $230,000); Kendra Capital (Adjusted Basis-$130,000; Fair Market Value-$230,000 Toya Capital (Adjusted Basis- $130,000; Fair Market Value - $230,000) (Total Liabilities And Equity (Capital)- (Adjusted Basis-$570,000; Fair Market Value $870,000) Rochelle sells her interest in the Partnership to someone outside of the Partnership for Cash of $230,000 and the assumption of her share of the Partnership Liabilities. The amount of Capital Gain recognized by Rochelle for the sale of her…