Notes in Acstran

Loss on Realization
5. Jar, Ram, and Millo, who divide profits and losses 50%, 30%, and 20%, respectively,
have
the following October 31, 2011 account balances:
Jar, drawing (Dr.) P12.000
Millo, drawing (Cr.) 4,800
Accounts receivable - Jar 7,200
Loans payable-Ram 14,400
Jar, capital 59,400
Ram, capital 44,400
Millo, capital 39,000
The partnership's assets are P211,200 (including cash of P64,200). The partnership is
liquidated and Millo receives P33.000 in final settlement. How much is the total loss on
realization?
a. 10,800 c. 54.000
b. 31,200 d. 64,200 Dayag 2013
Partnership Liquidation & Incorporations
Partnership Liquidation & Incorporations - MCQ Problems Page 3
Realized loss allocated to a partner
6. Because of very unprofitable operations, partners Nal, Lou, and Gee decided to
dissolve the
partnership when their capital balances and profit and loss ratio were:
Nal, capital (30%) P175,000
Lou, capital (20%) 125,000
Gee, capital (50%) 175,000
Total P475,000
Upon liquidation, all of the partnership's assets are sold and sufficient cash is realized to
pay
all liabilities except one for P25,000. Gee is personally insolvent, but the others are
capable of
meeting any indebtedness of the firm. By what amount would the capital of Nal change?
a. 7,500 decrease c. 195,000 decrease
b. 150,000 decrease d. No change Punzalan 2014
7. Silverio, Domingo, Reyes, and Pastor are partners, sharing earnings in the ratio of
3/21,4/21, 6/21
and 8/21, respectively. The balances of their capital accounts on December 31, 2011
are as
follows:
Silverio P1,000
Domingo 25,000
Reyes 25,000
Pastor 9,000
The partners decide to liquidate, and they-accordingly convert the non-cash assets into
P23,200 of
cash. After paying the liabilities amounting to P3,000, they have P22,200 to divide.
Assume that
a debit balance of any partner's capital is uncol¬ lectible.
The share of Silverio in the loss upon conversion of the non-cash assets into cash was:
a. P4,972 c. P5,400
b. P5,257 d. P5,200