Professional Documents
Culture Documents
1) As of December 31,2008, the books of XYZ Partnership showed capital balance of: X
P60,000; P45,000 ; Z P15,000. They share profits and losses in the ratio of 4:4:2,
respectively. After some time, they decided to liquidate sold all non-cash assets of
P41,000. Liabilities were paid amounting to P16,000 and P33,000 each is available for
distribution. Assuming that any capital debit balance is uncollectible, the share of each
partner in the cash distribution would be:
a)
b)
c)
d)
2) Kit and Kat are partners sharing profits and losses equally. Their books of the
partnership showed capital balances of: Kit-P42,000 and Kat-P64,000. Cash, liabilities
and non-cash assets amounted to P16,000, P20,000 and P110,000, respectively. On
December 31,2008, the partnership is dissolved and liquidated of installments, and the
first realization of P30,000 cash is on the sale of non-cash asset of book value of P60,000.
After payment of liabilities, the available and shall be distributed to Kit and Kat as
follows:
a)
b)
c)
d)
Kit-P6,000 ; Kat-P22,000
Kit-P25,000; Kat-P25,000
Kit-P22,000; Kat-P 6,000
Kit-P2,000 ; Kat-P24,000
3) On October 31,2007, A,B, and C decided to dissolve the partnership. Their capital
balances and profits and losses ratio on this date are as follows:
Cash Balance
P/L Ratio
40,000
20%
70,000
50%
40,000
30%
Cash and Liabilities are P20,000 and P45,000, respectively. Net income form
January to October is P28,000.
How much must be realized from the sale f non-cash assets for B to receive
P32,500?
a)
b)
c)
d)
103,000
100,000
110,000
113,000
4) Ding and Dong are partners who share profits and losses in the ratio of 60:40,
respectively. They decided to liquidate and accordingly sold the non-cash assets with a
realization of P10,000 cash. Liabilities were paid for P3,000 and available cash is P9,000.
Their capital balance is Ding P3,000 and Dong P12,000. after the P9,000was divided, the
capital balance of each partner is:
a)
b)
c)
d)
450
9,600
9,000
600
5) R, S, and T are partners sharing profit and losses in the ratio of 2/6, 3/6 and 1/8,
respectively. The partners capital balances are: R-P25,800, S-P24,000, and T-P16,200.
The liabilities amount to P36,000 including a laon of 16,000 from S. The cash balance is
8,000. All partners are personally solvent. The partners plan to sell the assets by
installment. If T received 3,000 from the 1st distribution of each, how much did R and S
receive that time?
R
a)
9,800
3,300
b)
3,300
c)
3,300
d)
R
R and S equally
S
T
7) D, E, and F, partners have capital balances of P9,800, P12,000 and P5,200 and
respectively and share profits in the ratio of 4:2:1. Prepare a schedule showing how avail
cash will be given to the partners as it becomes available. Who among the partners shall
be paid first with an available cash of P1,200?
a)
b)
c)
d)
D
E
F
D and F
8) After operating for 3 years, the books of Gigoy Partnership showed the following
balances:
Net Assets
Gig, Capital
Goy, Capital
130,000
20,000
50,000
If liquidation takes place at this point and net assets are realized at book value, the
partners are entitled to:
a)
b)
c)
d)
Gig-P20,000 ; Goy-P50,000
Gig-P42,850 ; Goy-P58,250
Gig-P96,400 ; Goy-P71,000
Gig-P91,450 ; Goy-P69,700
9) The balance sheet of the firm of JKL partnership shows the following?
ASSETS
Cash
20,000
LIABILITIES
Accounts Payable 25,000
J,Capital
K, Capital
L,Capital
Total
110,000
27,000
23,000
35,000
Liabilities
The partners decided to liquidate by installments the 1st sale of non-cash assets
with a book value of P40,000 realizes P25,000.
10) If P1,800 cash is withheld for possible liquidation expenses, how much cash should L
receive?
a)
b)
c)
d)
11,460
23,480
9,720
24,640
ANSWERS:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
A
D
B
D
D
C
B
A
B
B
SOLUTIONS:
1)
X
60,000
(34,800) (34,800)
(87,000)
Balance
25,200
(1,200)
Cash Received
45,000
TOTAL
15,000
120,000
10,200
(2,400)
33,000
(1,200)
(2,400)
9,000
24,000
2)
KIT
KAT
42,000
64,000
(15,000)
(15,000)
Balance
27,000
49,000
(25,000)
(25,000)
Cash Received
2,000
24,000
3) Total Capital
P178,000
Total Liabilities
P 45,000
Total Assets
P 223,000
Less: Cash
P 20,000
Non-Cash Assets
P203, 000
33,000
(P103, 000)
P100, 000
DING
DONG
TOTAL
3,000
12,000
15,000
3,600)
(2,400)
(6,000)
Balance
(600)
9,600
9,000
600
(600)
9,000
9,000
9,600
(9,000)
600
Cash Received
5)
25,800
Profit/Loss ratio
2/6
77,400
24,000 16,200
3/6
48,000
Priority I
Cash Payment
R (2/6)
48,000
(29,400)
48,000
I (1/6)
97,200
(3,300)
Priority 1
77,400
(29,400)
48,000
S (3/6)
1/6
(19,800)
77,400
Priority II
9,800
4,900
48,000
6) S is the most vulnerable partner since he has the lowest absorption capacity
meaning that his equity would be reduced to zero with a total partnership loss on
liquidation of P48,000.
7)
Cash Payment
9,800
12,000
5,200
P/L Ratio
50%
30%
20%
40,000
26,000
Priority I
(14,000)
19,600
Priority II
19,600
4,200
Priority1
26,000
26,000
(6,400)
(6,400)
1,920
1,280
19,600
19,000
6,120
1,280
8) The partners are entitled to receive an amount equal to their capital balances since the
non-cash assets are realized at book value, meaning there is no gain or loss in selling the
assets.
9)
TOTAL
27,000
23,000
35,000
85,000
Loss on realization
(90,000-40,000) 3:5:2
(15,000)
(25,000)
(10,000)
(50,000)
Balances
12,000
(2,000)
25,000
35,000
(1,200)
2,000
(800)
Cash received
10,800
24,200
10)
27,000
23,000
35,000
(15,540)
(25,900)
(10,360)
35,000
Balance
11,460
(2,900)
24,640
(1,740)
2,900
(1,160)
Cash received
9,720
23,480