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    Jarold Matias
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    1. The document describes the liquidation of a partnership called Ana, Bada, Cada. It provides journal entries to record the sale of assets, distribution of gain, payment of liabilities, and distribution of remaining cash to the partners. 2. It also describes the liquidation of another partnership called Soria and Paras. It provides a calculation to determine how a loss on liquidation should be divided between the partners based on their capital balances. 3. Finally, it addresses the cash priority program for another partnership called Bee, Lee, Ong. It shows how available cash should be distributed based on partners' capital balances and loans to absorb losses in a specified order of priority.

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    1. The document describes the liquidation of a partnership called Ana, Bada, Cada. It provides journal entries to record the sale of assets, distribution of gain, payment of liabilities, and distribution of remaining cash to the partners. 2. It also describes the liquidation of another partnership called Soria and Paras. It provides a calculation to determine how a loss on liquidation should be divided between the partners based on their capital balances. 3. Finally, it addresses the cash priority program for another partnership called Bee, Lee, Ong. It shows how available cash should be distributed based on partners' capital balances and loans to absorb losses in a specified order of priority.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    3 views4 pages

    Accounting 5

    Uploaded by

    Jarold Matias
    1. The document describes the liquidation of a partnership called Ana, Bada, Cada. It provides journal entries to record the sale of assets, distribution of gain, payment of liabilities, and distribution of remaining cash to the partners. 2. It also describes the liquidation of another partnership called Soria and Paras. It provides a calculation to determine how a loss on liquidation should be divided between the partners based on their capital balances. 3. Finally, it addresses the cash priority program for another partnership called Bee, Lee, Ong. It shows how available cash should be distributed based on partners' capital balances and loans to absorb losses in a specified order of priority.

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    © All Rights Reserved
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    of 4

    Bsba Fm 2e

    Activity 1 Lump sum Liquidation with gain or realization


    Ana , Bada, Cada Liquidation
    Journal Entries
    June 20, 20161
    1. Sale of all non-cash assets DEBIT CREDIT
    Cash 2,650,000
    Gain
    300,000
    Non-cash assets 2,350,000

    2. Distribution of gain on realization to the partners

    Ana Bada Cada Total


    Opening Balance 900,000 500,000 600,000 2,000,000
    Gain on sale 100,000 100,000 100,000 300,000
    Total 1,000,000 600,000 700,000

    3. Payment of liabilities

    Ana, Capital 100,000


    Bada, Capital 100,000
    Cada, Capital 100,000
    Gain on sale 300,000
    Total 300,000 300,000

    4. Distribution of cash to the partners

    Ana, Capital 1,000,000


    Bada, Capital 600,000
    Cada, Capital 700,000
    Gain on sale 2,300,000
    Total 2,300,000
    Activity 2.

    A= L+C 150,000 220,000


    70,000 -160,000
    B4 A=L+C 220,000 60,000 less

    1. If there is no less in cursed, total cash available after paying the liabilities should be
    equal to total capital of Soria since total cash available after paying liabilities is only
    160,000 pesos it means a 60,000 loss needs in cursed during the sale resulting to the
    decrease in cash available from supposedly 220,000 to only 160,000
    2. Less or gain should be divided using the ratio of their capital balances.
    In their case:
    Soria 150,000 15/22 x 60,000 = 40,909.09
    Paras 70,000 17/22 x60,000
    220,000
    3. Cash distribution
    Ratio X available cash
    Soria 15/22 X 160,000 = 109,091.91
    Paras 7/22 X 160,000 = 50,909.09
    160,000.00
    Activity 3.

    Bee, lee, Ong


    Cash priority program

    Bee Lee Ong Bee Lee Ong


    Cash 150,000.00 350,000.00 200,000.00
    balances
    Add: 100,000.00 100,000.00 150,000.00
    partners
    total loans
    Total 250,000.00 450,000.00 350,000.00
    capital
    Divided 40% 40% 20%
    PIL ratio
    Loss 625,000.00 1,125,000.00 1,750,000.00
    absorption
    balance
    Priority 1: (625,000) 125,000.00
    to Ong
    Balances 625,000.00 1,125,000.00 1,125,000.00
    Priority ll (520,000.00) 500,000.00 200,000.00 100,000.00
    to Ong
    and Lee
    625,000.00 625,000.00 625,000.00 200,000.00 225,000.00

    Journal entry to record the distribution of 250,000 available cash to partners.


    Ong lee Cash Balances
    Cash available 200,000.00 250,000.00
    Priority 1. Ong 125,000.00 125,000.00
    Priority ll
    Ong : 1/3 X 125,000 41,666.67 83,333.33
    Lee : 2/3 X 125,000 83,333.33
    Total Cash received. 166,666,67 83,333.33

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