Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Problem #21 & #23

Oh yeah!
by

Leo Hipona

on 2 October 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Problem #21 & #23

Problems #21 and #23 By: Sabado Boys Problem #21 Espeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept. 23, 2011. On that date, The statement of financial position of the partnership is as follows: Espeleta and De Guia Statement of Financial Position Sept. 23, 2011 Assets Cash Other Assets Total P 5,000 100,000 P 105,000 Liabilities and Partner's Capital Accounts Payable-Trade Loan Payable-De Guia Espeleta, Capital De Guia, Capital P 15,000 10,000 60,000 20,000 P 105,000 Total On Sept. 23, 2011, non-cash assets with a carrying amount of P70,000 realized P60,000, and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation cost. On Oct.1, 2011 the remaining non-cash assets realized P18,000(net of liquidation cost), and all available cash was distributed to partners. Espeleta amd De Guia share profits and losses 40% and 60%, respectively 1. Prepare the Cash Priority Program 2. Prepare the journal entries to record the realization of assets and distribution of cash creditors and partners. Cash Priority Program Espeleta De Guia Capital add Loan: Partner's Total Interest Divide to Profit/Loss Ratio less Adsorption Balance 60,000 20,000 10,000 60,000 30,000 40% 60% 150,000 (100,000) 50,000 50,000 50,000 40,000 *Solution Statement of Liquidation Cash Non-cash Asset Accounts Payable Loan De Guia Espeleta De Guia 5,000 100,000 15,000 10,000 60,000 20,000 60,000 (70,000) (4,400) (6,000) 65,000 30,000 15,000 10,000 56,600 14,000 (15,000) (15,000) 50,000 30,000 -0- 10,000 56,600 14,000 (49,000) (5,400) (43,600) 1,000 30,000 4,600 12,400 14,000 18,000 (30,000) (4,800) (7,200) 19,000 4,600 7,600 6,800 Problem #23 On Nov. 10, 2011, De Guzman, Seechua, and Longalong, partners had capital account balances of P20,000; P25,000; and P90,000, respectively, and share profits or losses in a 4:2:1 ratio. Required: 1. Prepare the cash priority program assuming that liabilities totaled P20,000 on Nov. 10, 2011.
2. If De Guzman received P4,000; how much cash was paid to all partners?
3. If De Guzman received P13,000; how much did Longalong get?
4. If Seechua received only P11,000 as a result of the liquidation, what was the loss on realization of the partnership assets (assuming that no partner invested any additional assets in the partnership)?
Full transcript