[65]. Gardo and Gordo formed a partnership on July 1, 2011 to operate two stores to be managed by each of them, They invested P30,000 and P20,000 and agreed to share earnings 60% and 40% respectively. All their transactions were for cash, and all their subsequent transactions were handled through their respective bank accounts as summarized below: Gardo Gordo Cash recelpts. P79,100 P65,245 Cash disbursements 62,275 70,695 ‘On October 31, 2011, al remaining noncash assets in the two stores were sold for cash of 60,000. The partnership was dissolved, and cash settiement was effected. In the distribution of the P60,000 cash, Gardo received 24,000 P 26,000 34,000 P36,000 ees e [6G]. The partner AA, Bida, Cita, and Dina, who share prafits and losses in the respective ratio of 3:3:2:2, decided to liquidate their partnership. Just prior to liquidation, they prepared the following summary balance sheet: Cash P 100,000 Liabilities P 750,000 Other assets 1,800,000 _ Bida, loan 160,000 Dina, loan 50,000 AA, capital 420,000 Bida, capital 215,000Cita, capital 205,000 Dina, capital 100,000 Total P1,900,000 Total 1,900,000 The noncash assets realized P800,000. If all the partners are personally solvent, deficiency/deficiencies, resulting from the liquidation process, will require additional cash from: a. ida at P85,000 and Dina at P100,000 b. Bida at P85,000 ¢. Dina at P50,000 d. None of the above [67]. The balance sheet of the partnership of Salve, Gilda, and Nora, who share profits and losses in the respective ratio of 5:3:2, follows: Assets Liabilities and Capital Cash P 30,000 Liabilities P 50,000 Other assets 320,000 Salve, capital 80,000 Gilda, capital 115,000 Nora, capital 05,000 Total 350,000 350,000 The partners agreed lo liquidate the partnership by installments, Immediately there was a realization of P100,000 cash from selling other assets with a book value of P150,000, Of the cash available, the priority is the payment of the liabilities and the balance Is to be distributed to the partners. How should the remaining cash be distributed. a. Salve, P50,000; Gilda, P-30,000; and, Nora, P20,000. b. Salve, P40,000; Gilda, P24,000; and, Nora, P16,000. ¢. Salve, P—O—; Gilda, P31,000; and, Nora, P49,000. d. Salve, P—O-—; Gilda, P48,000; and, Nora, P32,000.Questions 68 through 70 are based on the following data from the records of ABC Partnership: ABC Partnership Balance Sheet December 31, 2010 Assets, Cash P 2,000 ‘Other Noncash Assets 28,000 Total P 30,000 Liabilities & Net Worth Liabilities P 5,000 A.loan 2,500 A, capital 12,500 B, capital 7,000 C, capital 3,000 Total P 30,000 Profit and loss ratio is 3:2:1 for A, B, and C, respectively. The ather non-cash assets were realized as follows: Date Cash Received Book ValueJan., 2011 P 6,000 P 9,000 Feb, 2011 3,500 7,700 Mar., 2011 12,500 11,300 Cash is distributed as assets are realized. [68]. The total loss to Als a. P3,000 b. P2,000 c. P1,000 d. PO [69] The total cash received by Bis: a. P2,200 PO 5,000 1,500 aoe [70]. Cash received by C in January is: a, P 200 b. P1000 c. P 500 d. PO (71. X,¥ and Zhave capital balances of P40,000, P50,000, and P18,000 anda profit- sharing ratio of 4:2:1, respectively. If X received P8,000 upon liquidation of the partnership, the tolal amount received by all the partners was: a. P108,000 b. P 56,000c. P §2,000 d. P 24,000 [72]. Assume the same facts above, except that X received P26,000 as a result of the liquidation, Z received, as part of the liquidation, the amount of: a, P26,000 b. P14,500 cc, P18,000 d. P14,000 [73]. _ Sanchez and Tan ere partners sharing profits equally and with capital balances, respectively, of P750,000 and P500,000. The firm owes Tan P200,000, as evidenced by a promissory note, Upon liquidation, cash of P300,000 becomes available for distribution to ‘the partners. In the final cash distribution, the respective shares af Sanchez and Tan will be: a, P150,000 and P150,000 b.P175,000 and P125,000 ¢, P200,000 and P100,000 d. P275,000 and P 25,000 [74]. After operating for five years, the partnership of Remy and Martin, who share profits and loses equally, had balances as follows: Net assets P130,000 Remy, capital 85,000 Martin, capital 45,000 If liquidation takes place at this time and the assets are realized at book value, Remy and Martin would be entitled to receive: a, P65,000 and P65,000, respectively, b. 85,000 and P45,000, respectively. €, P90,000 and P40,000, respectively.d. P97,500 and P32,500, respectively, [75]. The condensed balance sheet of Alex, Jay and John, as of March 31, 2011 follows: Cash P 28,000 Liabilities P 48,000 Other assets 265,000 Alex, capital 95,000 day, capital 80,000 John, capital 70,000 Total assets P293,000 Total equities P293,000 The income and loss ratio is 50:25:25, respectively. The partners voted to dissolve their partnership and liquidate by selling the other assets in installments. The amount of P70,000 was realized to the first cash sale of ather assets with a book value of P1S0,000. After settlement with creditors all cash available was distributed to the partners. How much was received by John in the cash distribution? a, P30,000 c. P21,250 b. P20,000 d, P31,250[65]. —_ Letter "B" Is the correct answer. In the distribution of the P60,000 cash, Gardo recelved P26,000, computed as follows: Total Gardo GardoInitial contributions P50,000 30,000 20,000 Equiv. Investments (payments) 132,870 62,275 70,695, Equlv. Withdrawals (recelpts) (144,345) (79,100) (65,245) Balances before profit share P 38,625 13,175 25,450 Profit (P60,000-P36,625), 6:4 21,375 = 12,825 8,550 Distribution of P60,000 cash P60,000 P26,000 P34,000 [66]. Letter ‘Cis the correct answer. Hf sll the partners are personally solvent. deficlency/deficlencies resulting from the liquidation process, wil require additional cash from Dina in the amount of P50,000, computed as follows: AA Bida Cia Dina Capital balances 420,000 P216,000 205,000 P100,000 Loan balances - 160,000 - 50,000 Total Interests 420,000 375,000 P205,000 P150,000 Less: share In realization Loss of P1,000,000 at 3322 300,000 300,000 200,000 200,000 Balance (deficiency) + P'120,000 P P75,000 P 5,000 P(50,000) (67. Letter °C" ls the correct answer. The remaining cash Is distributed as Salve, PO; Gilda, P31,000; and, Nora, P49,000, respectively, computed as follows: Save Glida Nora Capital balances 80,000 P115,000 105,000 Realization loss ( 5:3:2) (P'150,000-P100,000) (25,000) { 15,000) ( 10,000) ‘Theoretical loss on atherasset(P320,000-P150,000) (85.000) ( 51,000) { 34,000) Balances befora distribution P(30,000) P 49,000 P 61,000 Salve's daficlency at 3:2 30,000 { 18,000) ( 12,000) Cash distribution P -0- P 31,000 P 49,000 [68]. Letter “A Is the correct answer, The total loss to Als, P3,000, computed as folows: Total book value of non-cash assets realtzed: (P9,000 + P7,700 +P11,300) P28,000 Less: Total cash recelved: (P6,000 + P3,500 + P12,500) 22,000 Total realization loss P 6,000 Total loss to A: (3/6 of P6,000) P 3,000 [69]. Letter “C"Is the correct answer. Total cash recelved by B Is P5,000, computed as follows: B, capital 7,000 Less: Share In total realization loss: (2/6 x P6,000) 2,000 Total cash recelved by B 5,000 {70}. _Letter "Is the correct answer. ‘The cash recelved by C in January Is PO, computed as follows: C, capital P3,000 Less: Share ine Realization loss in January: (P9.000 - P6,000)x 1/6 P 500‘Theoretical loss on remalning non-cash assets: (P19,000 x 1/6) 3,167 Total P3,667 Cash recelved by C In January P-o- [71]. Letter "CIs the corract answer. ‘The total amount recelved by all of the partners, If X recelved P8,000 upon liquidation of the partnership was P52,000, computed as follows: X capttal 40,000 Less: Amount rec'd In liquidation 8,000 Xs share In liquidation loss 32,000 Total capital of the three partners P108,000 Less: Total liquidation loss (P32,000 , 4x7) 56,000 Total amount received by all of the partners: P 52,000 [72]. _Letter “B" Is the correct answer. Assuming the facts given In No. 17, except that X recelved P26,000 as a resutt of the liquidation, as part of the liquidation Z received the amount of P14, 500, computed as follows: X capital 40,000 Less: Amount rec'd In liquidation 26,000 Xs share In liquidation loss P14,000 Z.captal P18,000 Less: Share In liquidation loss (P14,000,4 x 1) 3,500 Amount recelved by Z in liquidation 14,500 [73]. Letter “B*Is the correct answer.‘The respective shares of Sanchez and Tan In the final cash distribution will be 175,000 and P125,000, respectively, computed as follows: Total © Sanchez = Tan Capital balances P1,250,000 P750,000 500,000 Note payable to Tan 200,000 - 200,000 Total interest P1,450,000 750,000 700,000 Realization loss, equally: 4,450,000 —P300,000 —_(P1,150,000) (575,000) (575,000) Share Infinal distribution — P_ 300,000 P175,000 125,000 [74]. Letter ‘B*is the correct answer, If quidation takes place and assets are reallzed at book value, the partners would receive cash distributions equal to thelr recorded capital balances iin final liquidation. [75]. Letter "B*Is the correct answer, John recelved total cash distribution of P20,000, computed as follows: Aex day John Capttal balances PO5,000 PB0,000P70,000 Loss on realization of other assets at 21:1 (P150,000- 70,000) —(40,000} (20,000) (20,000) Theoretical loss on remahning other assets (P265,000-P150,000) (97,500) (28,750) (28,750) Adjusted capital balances = P( 2,500) P31,250 P21,250 Deficiency of Alex 2,500 ( 1,250) { 1.250) Cash distribution basis P -0- P30,000 20,000