APC Ch7sol

CHAPTER 7
Installment Liquidation
E 7-1
Cash Aguilar Bernardo
Balances before liquidation P 40,000 P 80,000 P 44,000
Restricted interest – possible loss of P84,000 if nothing is
realized on the remaining non-cash assets ( 50,400) ( 33,600)
Balances P 40,000 P 29,600 P 10,400
Distribution of cash to partners ( 40,000) ( 29,600) ( 10,400)
E. 7-2
Conde Dalmacio
Balances before liquidation P142,000 P 108,000
Estimated liquidating expenses ( 10,000) ( 10,000)
Possible loss of P220,000 if nothing is realized on non-cash
assets (110,000) (110,000)
Balances P22,000 (P12,000)
Additional possible loss to Conde for the deficiency of
Dalmacio ( 12,000) 12,000
Balances P 10,000 -
Payment to Conde ( 10,000) -
E 7-3
Estela, Fajardo and Gomez
Cash Priority Program
PAYMENTS
Estela Fajardo Gomez Estela Fajardo Gomez
Capital balances P 30,000 P 70,000 P40,000
Add Loan balances 20,000 20,000 30,000
Total partners’ interest P 50,000 P 90,000 P 70,000
Profit and loss ratio 40% 40% 20%
Loss absorption balance P125,000 P225,000 P350,000
Allocation 1 – Cash to Gomez
reducing LAB to an amount
reported for Fajardo
(P125,000 x 20%) (125,000) P25,000
Balances P125,000 P225,000 P225,000
Allocation II – Cash to Fajardo &
Gomez reducing LAB to an
amount reported for Estela
P100,000 x 40% (100,000) P40,000
P100,000 x 20% (100,000) 20,000
Balances P125,000 P125,000 P125,000 - P40,000 P45,000
Allocation III – further cash
distribution may be made in the
P & L ratio
E 7-4
Halili, Ibanez and Jacinto
PAYMENTS
Halili Ibanez Jacinto Halili Ibanez Jacinto
Capital balances P11,200 P13,000 P5,800
Profit and loss ratio 4/7 2/7 1/7
Allocation I – Cash to Ibanez
reducing LAB to an amount
reported for Jacinto (P4,900 x
2/7) ( 4,900) P 1,400
Balances P19,600 P40,600 P40,600
Allocation II – Cash to Ibanez &
Jacinto reducing LAB to an
amount reported for Halili
P21,000 x 2/7 (21,000) 6,000
P21,000 x 1/7 (21,000) P 3,000
Balances P19,600 P19,600 P19,600 - P 7,400 P 3,000
Allocation III – Further cash
distributions may be made in
the P & L ratio
2. Book value of assets P30,000

Loss on realization
Capital balance of Halili prior to realization P 11,200
Cash to be received by Halili 10,000
Share of Halili in the loss on realization P 1,200
Fractional share of Halili 4/7 2,100
Cash to be realized of the sale of assets P27,900
3. Allocation III – P3,200  4/7 = P5,600 x 1/7 P 800

Allocation II 3,000
Total cash received by Jacinto P 3,800
4. Book value of assets P 30,000

Total cash available
Allocation I P 1,400
Allocation II – P1,800 – P1,400  2/3 600 2,000
Loss on liquidation P 28,000
E 7-5
1. Kho, Lagman and Magno
January 1, 2014
PAYMENTS
Kho Lagman Magno Kho Lagman Magno
Capital balances before liquidation P 36,000 P 54,000 P18,000
Add Note payable to Magno 14,000
Profit and loss ratio 3/10 3/10 4/10
Loss absorption balances P120,000 P180,000 P80,000
Allocation I – Cash to Lagman reducing
LAB to an amount reported for Kho
(P60,000 x 3/10) (60,000) P18,000
Balances P120,000 P120,000 P80,000
Allocation II – Cash to Kho & Lagman
reducing LAB to an amount reported for
Magno (P40,000 x 3/10) ( 40,000) (40,000) P12,000 12,000
Balances P80,000 P80,000 P80,000 P12,000 P20,000 -
Allocation III – Further cash distributions
may be made in the P & L ratio
2. Kho, Lagman and Magno
Statement of Liquidation
January to March, 2014
Other NP to PAYMENTS
Cash Assets Liabilities Magno Kho Lagman Magno
Balances before liquidation P12,000 P146,000 P36,000 P14,000 P36,000 P54,000 P18,000
January:
Sale of assets and dist. of
loss 30,000 ( 38,000) ( 2,400) ( 2,400) ( 3,200)
Payment of liquidation
expenses ( 3,600) ( 1,080) (1,080 (1,440)
Payment of liabilities ( 36,000) (36,000)
Distribution of cash to
partners (sch. 1) ( 2,400) (2,400)
Balances P108,000 P14,000 P32,520 P48,120 P13,360
February:
Sale of assets and
distribution of gain 44,000 (35,000) 2,700 2,700 3,600
Payment of liquidation
expenses (8,400) (2,520) (2,520) (3,360)
Distribution of cash to
partners (sch. 2) (35,600) (10,000) (25,600)
Balances P73,000 P14,000 P22,700 P22,700 P13,600
March:
Sale of assets and
distribution of loss 36,000 (73,000) (11,100) (11,100) (14,800)
Balances P36,000 P14,000 P11,600 P11,600 P(1,200)
Offset of loan against
deficiency ( 1,200) 1,200
Final payment to partners (P36,000) (P12,800) (P11,600) (P11,600)
Schedule 1
January 31, 2014
Amount Kho Lagman Mango

Cash available P2,400
Allocation I – Payable to Lagman P2,400 P2,400
Schedule 2
February 28, 2014
Amount Kho Lagman Mango

Allocation I – Balance
Payable to Lagman P2,400 P2,400
Allocation II – Payable to Kho and
Lagman P20,000 P10,000 10,000
P10,000 P25,600 -
3. Journal entries
January Cash 30,000
Kho, Capital 2,400
Lagman, Capital 2,400
Magno, Capital 3,200
Other assest 38,000
Kho, Capital 1,080

Cash 3,600
Liabilities 36,000
Cash 36,000

Cash 2,400
February Cash 44,000

Other assets 35,000
Kho, Capital 2,700
Kho, Capital 2,520

Cash 8,400
Kho. Capital 10,000
Cash 35,600
March Cash 36,000

Kho, Capital 11,100
Other assets 73,000
Note Payable to Magno 1,200

Note Payable to Magno 12,800

Kho, Capital 11,600
Cash 36,000
P 7-1
NOPQ Trading
February 1 – March 31, 2014
CAPITAL
Other Noble Noble Orbos Pimentel Quezon
Cash Assets Liabilities Loan (20%) (30%) (30%) (20%)
Balances before liquidation P100,320 P193,530 P21,360 P15,000 P24,120 P96,480 P109,020 P27,870
February:
Sale of assets & distribution of loss 49,320 (66,060) ( 3,348) ( 5,022) ( 5,022) ( 3,348)
Payment of liabilities ( 17,750) ( 17,750)
Payment of liquidation expenses ( 8,220) ( 1,644) ( 2,466) ( 2,466) ( 1,644)
Balances P123,670 P127,470 P 3,610 P15,000 P19,128 P88,992 P101,532 P22,878
Payment to partners (sch. 1) (120,060) ( 7,980) (49,770) (62,310)
Balances P 3,610 P127,470 P 3,610 P 7,020 P19,128 P39,222 P39,222 P22,878
March:
Sale of assets & distribution of gain 48,330 (44,850) 696 1,044 1,044 696
Payment of liabilities ( 3,610) ( 3,610)
Payment of liquidation expenses ( 7,380) ( 1,476) ( 2,214) ( 2,214) ( 1,476)
Balances P 40,950 P 82,620 P 7,020 P18,348 P38,052 P38,052 P22,098
Payment to partners (sch. 2) ( 40,950) ( 7,020) ( 1,824) (13,266) (13,266) ( 5,574)
Balances, March 31 P 82,620 P16,524 P24,786 P24,786 P16,524
NOPQ Trading Co.
Schedule To Accompany Statement of Liquidation
Amounts to be Paid to Partners
Februart 28, 2014
Noble Orbos Pimentel Quezon

Capital balances before cash distribution P19,128 P88,992 P101,532 P22,878
Add Loan balances 15,000
Total partners’ interest P34,128 P88,992 P101,532 P22,878
Restricted interest – possible loss if nothing is
realized on remaining assets (25,494) (38,241) (38,241) (25,494)
Balances P 8,634 P50,751 P 63,291 (P2,616)
Restricted interest – additional possible loss if
Quezon is unable to pay his deficiency
(20:30:30) ( 654) ( 981) ( 981) (2,616)
Free interest – payments to partners P 7,980 P49,770 P62,310
Payment to apply on
Loan P 7,980
Capital P49,770 P62,310 P -----
Total cash distribution P 7,980 P49,770 P62,310 P -----
NOPQ Trading Co.

Schedule To Accompany Statement of Liquidation
Amounts to be Paid to Partners
March 31, 2014
Noble Orbos Pimentel Quezon

Capital balances before cash distribution P18,348 P38,052 P38,052 P22,098
Add Loan balance 7,020
Total partners’ interest P25,368 P38,052 P38,052 P22,098
realized on remaining assets (16,524) (24,786) (24,786) (16,524)
Free interest – payments to partners P8,844 P13,266 P13,266 P 5,574
Payment to apply on:

Loan P 7,020
Capital 1,824 P13,266 P13,266 P 5,574
Total cash distribution P 8,844 P13,266 P13,266 P 5,574
P 7-2
1. January : a. Cash 112,000
Accounts Receivable 112,000
b. Reyes, Capital 2,200

Samson, Capital 1,100
Toledo, Capital 1,100
Cash 4,400
c. Accounts Payable 38,000

Cash 38,000
d. Toledo, Capital 9,000

Cash 16,000
February: a. Cash 36,000


Samson, Capital 700
Toledo, Capital 700
2,800
c. Accounts Payable 39,000
Cash 38,000
Reyes, Capital 500
Samson, Capital 250
Toledo, Capital 250
d. Salary Payable to Reynes 6,000

Reyes, Capital 1,400
Cash 19,800
March: a. Cash 35,000

Reyes, Capital 4,000

Cash 4,000
c. Reyes, Capital 39,500

Cash 79,000
P 7-2
Reyes, Samson and Toledo Partnership

January 1 – March 31, 2015
CAPITAL
Other Toledo Sal. Pay Reyes Samson Toledo
Cash Assets Liabilities Loan to Reyes
Balances before liquidation P19,000 P191,000 P77,000 P 9,000 P 6,000 P50,000 P28,000 P40,000
January:
Collections from customers 112,000 (112,000)
Payment of liquidation expenses ( 4,400) ( 2,200) ( 1,100) ( 1,100)
Payment of liabilities (38,000) (38,000)
Balances P88,600 P79,000 P39,000 P 9,000 P 6,000 P47,800 P26,900 P38,900
Payment to partners (see schedule) ( 16,000) ( 9,000) ( 7,000)
Balances P72,600 P79,000 P39,000 P 6,000 P47,800 P26,900 P31,900
February:
Collections from customers 36,000 (36,000)
Payment of liquidation expenses ( 2,800) ( 1,400) ( 700) ( 700)
Payment of liabilities & dist. of gain (38,000) (39,000) 500 250 250
Balances P67,800 P43,000 P6,000 P46,900 P26,450 P31,450
Payment to partners (see schedule) (19,800) (6,000) ( 1,400) ( 3,700) ( 8,700)
Balances P48,000 P43,000 P45,500 P22,750 P22,750
March:
Collections from cust. & dist. of loss 35,000 (43,000) ( 4,000) ( 2,000) ( 2,000)
Payment of liquidation expenses ( 4,000) ( 2,000) ( 1,000) ( 1,000)
Balances P79,000 P39,500 P19,750 P19,750
Payment to partners ( 79,000) (39,500) (19,750) (19,750)
Reyes, Samson and Toledo Partnership
January 1, 2015
PAY M E N T S
Reyes Samson Toledo Reyes Samson Toledo
Capital balances before liquidation P 50,000 P28,000 P40,000
Add Loan balances 6,000 9,000
Total partners’ interest P 56,000 P28,000 P49,000
Profit and loss ratio  50%  25%  25%
Allocation I – Cash to Toledo reducing LAB to an amount reported
for Reyes and Samson, reduction of P84,000 requires payment
(25% x P84,000) (84,000) P21,000
Balances P112,000 P112,000 P112,000 - - P21,000
Allocation II – Further cash distributions may be made in the profit and loss ratio
SCHEDULE OF CASH DISTRIBUTION:

Amount Reyes Samson Toledo
January: Cash available P16,000
Allocation I:
Payable to Toledo 16,000 P16,000
February: Cash available P19,800

Allocation I – Balance
Payable to Toledo 5,000 5,000
Allocation II
Payable according
to P & L ratio P14,800 P7,400 P3,700 P3,700
P7,400 P3,700 P8,700
P 7-3
Urbe, Verde and Waje
January 1, 2015
PAY M E N T S
Urbe Verde Waje Urbe Verde Waje
Capital balances before liquidation P120,000 P90,000 P40,000
Loan balances 45,000 30,000 P13,000
Total partners’ interest P165,000 P120,000 P43,000
Allocation I – Cash to Verde reducing
LAB to an amount reported for
Urbe (P70,000 x 30%) (70,000) P21,000
Balances P330,000 P330,000 P265,000
Allocation II – Cash to Urbe & Verde to
reduce LAB to an amount reported
for Waje (P65,000 x 30%)
(P65,000 x 20%) (65,000) (65,000) P32,500 19,500
Balances P265,000 P265,000 P265,000 P32,500 P40,500 -
Allocation III – Further cash
distributions may be made in the P
& L ratio
2.
Amount Urbe Verde Waje

January:
Allocation I – payable to Verde 15,000 P15,000
February:
Allocation I – Bal. payable to Verde 6,000 P6,000
Allocation II – Payable to Urbe and Verde in the
ratio of 50:30 P34,000 P21,250 P12,750
P21,250 P18,750
March:
Allocation II – Balance 18,000 P11,250 P 6,750
Allocation III – Based on P & L ratio P72,000 360,00 21,600 P14,400
P47,250 P28,350 P14,400
April:
Allocation III – Based on P & L ratio 30,000 P15,000 P9,000 P6,000
P 7-3
Urbe, Verde and Waje

January 1 to April 30, 2014
Other LOAN CAPI TAL

Cash Assets Urbe Verde Waje Urbe Verde Waje
Balances before liquidation P338,000 P45,000 P30,000 P13,000 P120,000 P90,000 P40,000
January:
Sale of assets P15,000 (15,000)
Payment of partners (15,000) (15,000)
Balances P323,000 P45,000 P15,000 P13,000 P120,000 P90,000 P40,000
February:
Sale of assets 40,000 (40,000)
Payment to partners (40,000) (21,250) (15,000) (3,750))
Balances P283,000 P23,750 P13,000 P120,000 P86,250 P40,000
March:
Sale of assets 90,000 (90,000)
Payment to partners (90,000) (23,750) (13,000) (23,500) (28,350) (1,400)
Balances P193,000 P96,500 P57,900 P38,600
April:
Sale of assets & distribution of loss 30,000 (193,000) (81,500) (48,900) (32,600)
Balances P30,000 P15,000 P9,000 P 6,000
Payment to partners (30,000) (15,000) (9,000) (6,000)
P 7-4
Xavier, Yambot and Zapanta
Cash Distribution Schedule
June 30, 2014
PAY M E N T S
Xavier Yambot Zapanta Xavier Yambot Zapanta
Capital balances before liquidation P 67,000 P 45,000 P 31,500
Receivable from partners (12,000) (7,500)
Allocation I – Cash to Yambot to
reduce LAB to amount reported
for Zapanta (P30,000 x 30%) 30,000 P9,000
Balances P110,000 P120,000 P120,000
Allocation II – Cash to Zapanta &
Yambot to reduce LAB to an
amount reported for Xavier 10,000 10,000 3,000 2,000
Balances P110,000 P110,000 P110,000
Allocation III – Based on P & L ratio
(P6,000 + P100,000 – P17,000 =
P89,000 – P14,000)
P37,500 22,500 15,000
TOTALS P37,500 P34,500 P17,000
P 7-5
Fernan, Luisa and Susan
Statement of Changes in Partners’ Equity
For the Period of January 1, 2013 to May 31, 2015
Fernan Luisa Susan Total

2013
Original investment P 50,000 P 30,000 P 80,000
Distribution of net income (sch.1) 15,200 12,800 28,000
Total P 65,200 P 42,800 P108,000
Drawings ( 7,000) ( 6,000) ( 13,000)
Balances, December 31 P58,200 P 36,800 P95,000
2014
Investment of Susan (sch. 2) ( 9,100) ( 4,900) P 54,000 40,000
Distribution of net loss ( 4,200) ( 3,000) ( 4,800) ( 12,000)
Balances P 44,900 P 28,900 P 49,200 P123,000
Drawings ( 4,900) ( 3,900) ( 4,200) ( 13,000)
Balances, December 31 P 40,000 P 25,000 P 45,000 P110,000
2015
Distribution of cash in Feb. (sch. 3) ( 5,000) ( 5,000) ( 10,000)
Balances P 35,000 P 25,000 P 40,000 P100,000
Distribution of cash in April (sch. 4) ( 7,000) ( 5,000) ( 8,000) (20,000)
Balances P 28,000 P 20,000 P 32,000 P 80,000
Sale of assets & distribution of loss in May (sch. 5) (17,500) (12,500) (20,000) ( 50,000)
Balances P 10,500 P 7,500 P 12,000 P 30,000
Final cash distribution 10,500 7,500 12,000 30,000
Schedule 1 – Distribution of 2013 net income
Fernan Luisa Total

Salaries P10,000 P10,000 P20,000
Remainder – 65%:35% 5,200 2,800 8,000
Total P15,200 P12,800 P28,000
Schedule 2 – Admission of Susan
Total capital before admission of Susan P 95,000

Investment of Susan 40,000
Total capital P135,000
Interest acquired by Susan 40%
Capital credit of Susan P 54,000
Investment of Susan 40,000
Bonus to Susan from old partners (shared 65%:35%) P 14,000
Schedule 3 – Cash distribution in February
Fernan Luisa Susan

Capital balances before dist. of cash P40,000 P25,000 P45,000
realized on remaining assets (P100,000) 35,000 25,000 40,000
Free interest – amount to be paid to partners P 5,000 P ------- P 5,000
Schedule 4 – Cash distribution in April
Fernan Luisa Susan

Capital balances before dist. of cash P35,000 P25,000 P40,000
realized on remaining assets (P80,000) 28,000 20,000 32,000
Free interest – amount to be paid to partners P 7,000 P 5,000 P 8,000
Schedule 5 – Loss on realization of assets in May

Capital balances equal to net assets P80,000
Cash realized on sale of assets 30,000
Loss on realization P50,000
MULTIPLE CHOICE
MC 7-1 A
Elaine Flor Gina
Less loss on realization ( 16,000) (16,000) ( 8,000)
Balances P24,000 P49,000 P40,000
Less Restricted interest – possible loss of P90,000
on other assets (36,000) (36,000) (18,000)
Balances (P12,000) P13,000 P22,000
to Flor and Gina for the def. of Elaine 12,000 ( 8,000) ( 4,000)
Payment to partners - P 5,000 P18,000
MC 7- 2 B
Elaine Flor Gina
Balances after loss on realization P24,000 P49,000 P40,000
on other assets and possible liquidation
expenses (37,200) (37,200) (18,600)
Balances (P13,200) P11,800 P21,400
to Flor and Gina for the def. of Elaine 13,200 ( 8,800) ( 4,400)
Payment to Gina - - P17,000
MC 7-3 D
Elaine = P14,000 x 40% = P5,600
Flor = P14,000 x 40% = P5,600
Gina = P14,000 x 20% = P2,800
MC 7-4 C
Total credits (P105,000 + P5,000) P110,000
Less Cash 700
Other assets P109,300
MC 7-5 D
Capital of Aguas [P25,000 – (P20,000 x 60%)] P13,000
Amount received in final settlement 19,000
Share on gain on realization P 6,000
Profit ratio of Aguas  60%
Total gain on realization P10,000
Book value of other assets 109,300
Cash realized on other assets P119,300
MC 7-6 D
PAY M E N T
Aguas Bernal Coral Aguas Bernal Coral
Allocation I (133,333) P20,000
Balances P21,667 P180,000 P180,000
Allocation II (158,333) (158,333) P39,583 23,750
Balances P21,667 P21,667 P21,667 --- P39,583 P43,750
Cash received by Coral P33,000

Less Cash received per Allocation I 20,000
Cash received from Allocation II P13,000
 15/40
Total cash available for Allocation II P34,667
Share of Bernal X 25/40
Cash received by Bernal P21,667
MC 7-7 D
MC 7-8 C
Book value of other assets P280,000
Less Cash realized 220,000
Loss on realization P 60,000
Profit and loss share of Dalmacio X 3/6
Total loss to Dalmacio P 30,000
MC 7-9 C
Capital of Damian P 70,000
Less Share on the loss on realization (P6,000 x 2/6) 20,000
Cash received by Damian P 50,000
MC 7- 10 A
Dalmacio Damian Davide
Total partners’ interest P150,000 P 70,000 P 30,000
Loss on realization (15,000) (10,000) ( 5,000)
Balances P135,000 P 60,000 P 25,000
Restricted interest – pos. loss of P190,000 on other assets (95,000) (63,333) (31,667)
Balances P 40,000 (P 3,333) (P 6,667)
Restricted interest – possible loss to Dalmacio ( 10,000) 3,333 6,667
Cash received by Davide -0-
MC 7-11 B
PAY M E N T
Felix Fojas Fajardo Felix Fojas Fajardo
Loans (25,000) 50,000
Total partners’ int. P225,000 P125,000 P125,000
Loss absorption P750,000 P250,000 P625,000
balances
Balances P625,000 P250,000 P625,000
Allocation II (375,000) (375,000) 112,500 P75,000
Balances P250,000 P250,000 P250,000 P150,000 - P75,000
Alloc. III P&L ratio
MC 7-12 D
Creditors Felix Fojas Fajardo
Amount available P325,000 P 250,000
Payment to creditors (250,000)
Allocation. I (37,500) P37,500
Allocation II (37,500 22,500 P15,000
P250,000 P60,000 - P15,000
MC 7-13 A
MC 7-14 C
Felix Fojas
Amount to Felix P180,000
Allocation II (112,500) 112,500
Allocation III P 30,000 30,000
P30,000/30% x 50% P50,000
MC 7-15B
Fojas Fajardo
Allocation II P 75,000
Allocation III P180,000
P180,000/50% x 20% 72,000
P147,000
TM 25
1. E 5. H 9. I 13. A
2. M 6. M 10. C 14. N
3. K 7. D 11. B 15. L
4. F 8. G 12. J
TM 26
1. A
2. D
3. B
4. D
Abril Suarez Custodio
Allocation 1 – Cash to Custodio to reduce his
balances to that of Abril and Suarez (P155,000
x 20% = P31,000) (155,000)
Balances P185,000 P325,000 P325,000
Allocation 2 – Cash to Suarez and Custodio to
reduce their balances to that of Abril
(P140,000 x 40% = P56,000;
P140,000 x 20% = P28,000) (140,000) (140,000)
Balances P185,000 P185,000 P185,000
Allocation 3 – further cash distribution shall be made based on P & L ratio
Abril Suarez Custodio

Allocation 1 P31,000
Allocation 2 – P9,000 x 4/6 P6,000
P9,000 x 2/6 P3,000
P ------ P6,000 P34,000
5. D
Allocation 2 – P3,000 x 4/6 P2,000
P3,000 x 2/6 P1,000
P ------ P2,000 P32,000
6. A P24,000 x 4/10 = P9,600; P24,000 x 2/10 = P4,800
7. D
Donato Munoz Torres

Capital balances before liquidation P 72,000 P 80,000 P86,000
Add Loan balance 20,000
Total partners’ interest P 72,000 P100,000 P86,000
Allocation 1 – Cash to Torres to reduce his
balance to that of Donato and Munoz
(P190,000 x 20% = P38,000 (190,000)
Balances P240,000 P200,000 P240,000
Allocation 2 – Cash to Donato and Torres to
reduce their balances to that of Munoz
(P40,000 x 30% = P12,000;
P40,000 x 20% = P8,000) (40,000) (40,000)
Balances P200,000 P200,000 P200,000
Allocation 3 – Further cash distribution shall be
based on P & L ratio
8. C P190,000 x 20% = P38,000
9. B Available cash = P30,000 + P80,000 – P62,000 = P48,000
Allocation 2 – P10,000 x 3/5 P6,000
P10,000 x 2/5 P4,000
P6,000 P ---- P42,000
10. A
Allocation 2 Balance – P10,000 x 3/5 P 6,000

P10,000 x 2/5 P4,000
Allocation 3 – P & L ratio 21,000 P35,000 14,000
P27,000 P35,000 P18,000
TM 27
2.
ASC Partnership
June 30, 2014
PAYM E N T S
Alfonso Santos Censon Alfonso Santos Censon
Add Loan balances 25,000
Total partners’ interest P200,000 P300,000 P100,000
Loss absorption balance P400,000 P1,000,000 P500,000
Allocation I – Cash to Santos to reduce his balance to that of
Alfonso and Censon (P500,000 x 30% = P150,000) (500,000) P150,000
Balances P400,000 P500,000 P500,000
Allocation 2 – Cash to Santos and Censon to reduce their balances
to that of Alfonso
(P100,000 x 30% = P30,000;
P100,000 x 20% = P20,000) (100,000) (100,000) P30,000 20,000
Balances P400,000 P400,000 P400,000 - P30,000 P170,000
Allocation II – Further cash distributions may be made in the profit and loss ratio
Cash available for distribution = P230,000 + P100,000 – P150,000 = P180,000
2.
Alfonso Santos Censon Total
Allocation 1 P150,000 P150,000
Allocation 2 – P30,000 x 3/5 18,000 P12,000 30,000
Total P ---- P168,000 P12,000 P180,000

APC Ch7sol

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

APC Ch7sol

Transféré par

Droits d'auteur :

Formats disponibles

CHAPTER 7

2. Book value of assets P30,000

3. Allocation III – P3,200  4/7 = P5,600 x 1/7 P 800

4. Book value of assets P 30,000

Amount Kho Lagman Mango

Amount Kho Lagman Mango

Kho, Capital 1,080

Lagman, Capital 2,400

February Cash 44,000

Kho, Capital 2,520

March Cash 36,000

Note Payable to Magno 1,200

Note Payable to Magno 12,800

Noble Orbos Pimentel Quezon

NOPQ Trading Co.

Noble Orbos Pimentel Quezon

Payment to apply on:

b. Reyes, Capital 2,200

c. Accounts Payable 38,000

d. Toledo, Capital 9,000

February: a. Cash 36,000

b. Reyes, Capital 1,400

d. Salary Payable to Reynes 6,000

March: a. Cash 35,000

b. Reyes, Capital 2,000

c. Reyes, Capital 39,500

Reyes, Samson and Toledo Partnership

SCHEDULE OF CASH DISTRIBUTION:

February: Cash available P19,800

Amount Urbe Verde Waje

Urbe, Verde and Waje

Other LOAN CAPI TAL

Fernan Luisa Susan Total

Fernan Luisa Total

Schedule 2 – Admission of Susan

Total capital before admission of Susan P 95,000

Schedule 3 – Cash distribution in February

Fernan Luisa Susan

Schedule 4 – Cash distribution in April

Fernan Luisa Susan

Schedule 5 – Loss on realization of assets in May

Cash received by Coral P33,000

Abril Suarez Custodio

6. A P24,000 x 4/10 = P9,600; P24,000 x 2/10 = P4,800

Donato Munoz Torres

9. B Available cash = P30,000 + P80,000 – P62,000 = P48,000

Allocation 2 Balance – P10,000 x 3/5 P 6,000

Vous aimerez peut-être aussi