Problem 1

Cash Noncash AP
Balance before liquidation 250,000.00 450,000.00 300,000.00
Realization of noncash 170,000.00 - 450,000.00
Balance 420,000.00 - 300,000.00
Additional contribution 10,000.00
Balance 430,000.00 - 300,000.00
Payment of accounts payable - 300,000.00 - 300,000.00
Balance 130,000.00 - -
Settlement to partner - 130,000.00
Balance after liquidation - - -

Problem 2
Cash Noncash AP
Balance before liquidation 50,000.00 500,000.00 150,000.00
Realization of noncash 200,000.00 - 500,000.00
Balance 250,000.00 - 150,000.00
Absorption of partner's deficiency
Balance 250,000.00 - 150,000.00
Payment of accounts payable - 150,000.00 - 150,000.00
Balance 100,000.00 - -
Settlement to partner - 100,000.00
Balance after liquidation - - -

Multiple choice
1 c
2 d
3 c
4 c
5 c
6 d
7 b
8 a
9 c
10 c
11 c
Villanueva, capital Ho, capital Cash 170,000.00
200,000.00 200,000.00 Villanueva, capital 210,000.00
- 210,000.00 - 70,000.00 Ho, capital 70,000.00
- 10,000.00 130,000.00 Noncash 450,000.00
10,000.00
- 130,000.00 Cash 10,000.00
Villanueva, capital 10,000.00
- 130,000.00
- 130,000.00 Accounts payable 300,000.00
- - Cash 300,000.00

Ho, capital 130,000.00

Cash 130,000.00

Pangilinan, capital Gumban, capital Borda, capital Cash 200,000.00

150,000.00 130,000.00 120,000.00 Pangilinan, capital 50,000.00
- 50,000.00 - 100,000.00 - 150,000.00 Gumban, capital 100,000.00
100,000.00 30,000.00 - 30,000.00 Borda, capital 150,000.00
- 10,000.00 - 20,000.00 30,000.00 Noncash 500,000.00
90,000.00 10,000.00 -
Pangilinan, capital 10,000.00
90,000.00 10,000.00 - Gumban, capital 20,000.00
- 90,000.00 - 10,000.00 Borda, capital 30,000.00
- - -
Accounts payable 150,000.00
Cash 150,000.00

Pangilinan, capital 90,000.00

Gumban, capital 10,000.00
Cash 100,000.00
or Cash 170,000.00
Loss on realization 280,000.00
Noncash 450,000.00

Villanueva, capital 210,000.00

Ho, capital 70,000.00
Loss on realization 280,000.00

or Cash 200,000.00
Loss on realization 300,000.00
Noncash 500,000.00

Pangilinan, capital 50,000.00

Gumban, capital 100,000.00
Borda, capital 150,000.00
Loss on realization 300,000.00