CHAPTER 4 - 68 Chapter 4 CHAPTER 4 MULTIPLE CHOICE ANSWERS...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
68 Chapter 4 CHAPTER 4 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 4-1: a PAR BOOGIE BIRDIE Capital balances before realization P 20,000 P 16,000 P 10,000 Loss on liquidation, P40,000 ( 20,000 ) ( 12,000 ) ( 8,000 ) Cash distribution P P 4,000 P 2,000 4-2: c PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Gain of P10,000 (150,000-140,000) __6,000 __2,000 __2,000 Cash distribution P 56,000 P 52,000 P 12,000 4-3: b PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Loss of P40,000 (P140,000-P100,000) ( 24,000 ) ( 8,000 ) ( 8,000 ) Cash distribution P 26,000 P 42,000 P 2,000 4-4: a PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Loss of P70,000 (P140,000-P70,000) ( 42,000 ) ( 14,000 ) ( 14,000 ) Balances P8,000 P 36,000 ( 4,000) Absorption of Pong's deficiency, 6:2 ( 3,000 ) ( 1,000 ) __4,000 Cash distribution P 5,000 P 35,000 4-5: b COLT MARK CLOCK Capital balances before liquidation (net of loans)P290,000 P200,000 P220,000 Loss of P130,000, 4:3:3 ( 52,000 ) ( 39,000 ) ( 39,000 ) Cash distribution P238,000 P161,000 P181,000 4-6: c JONAS CARLOS TOMAS Capital balances before liquidation P160,000 P 45,000 P 55,000 Loss of P60,000, 40:50:10 ( 24,000 ) ( 20,000 ) ( 6,000 ) Cash distribution P136,000 P 25,000 P 49,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Partnership Liquidation 69 4-7: a ARIEL BERT CESAR Capital balances before liquidation P40,000 P180,000 P 30,000 Loss of P100,000, 4:3:3 ( 40,000 ) ( 30,000 ) ( 30,000 ) Cash distribution P P150,000 P 4-8: b NORY OSCAR Capital balances before realization P23,000 P 13,500 Additional investment by Nory for the unpaid liabilities (33,000-18,000) 15,000 Loss on realization (schedule 1) ( 30,900 ) ( 20,600 ) Payment by Oscar to Nory P 7,100 ( P7,100 ) Schedule 1 Total capital before liquidation P 36,500 Unpaid liabilities 15,000 Total loss on realization P 51,500 4-9: d BLACK WHITE GREEN Capital balances before liquidation (net) P99,000 P 91,500 P138,000 Loss on realization (schedule 1) P27,500 ( 13,750 ) ( 27,500 ) _( 5,500 ) Balances, cash distribution P85,250 P 64,000 P132,500 Schedule 1: Capital balances of white (net) P 91,500 Cash received by White _83,250 White's share of total loss (30%) P 8,250 Total loss on realization (P8,250/39%) P 27,500 4-10: c ANA EVA NORA Capital balances before liquidation (net) P27,000 P 43,000 P 10,000 Loss on realization, P63,600 ( 25,320 ) ( 25,320 ) ( 12,660 ) Balances P 1,680 P 17,680 ( 2,660) Unrecorded liabilities, P500 ( 200 ) ( 200 ) ( 100 ) Balances P 1,480 P 17,480 ( 2,760) Elimination of Nora's deficiency ( 1,380 ) ( 1,380 ) __2,760 Payment to partners P 100 P 16,100 P 4-11: d ARIES LEO TAURUS Capital balances before liquidation (net) P33,500 P 49,000 P 36,500 Loss on realization (schedule 1) P45,000 ( 22,500 ) ( 13,500 ) ( 9,000 )
Background image of page 2
Payment to partners P11,000 P 35,500 P 27,500 70 Chapter 4 Schedule 1: Taurus capital (net) P36,500 Payment to Taurus ( 27,500) Share of total loss (20%) P 9,000 Total loss on realization (9,000/20%) P45,000 4-12: c TOTAL MONA NORA OLGA Capital balances, June 11 P32,700 P15,000 P13,500 P 4,200 Net loss from operation (squeeze) ( 9,800 ) ( 4,200 ) ( 2,800 ) ( 2,800 ) Capital balances, August 30 before liquidation (48,500-25,600) P22,900 P10,800 P10,700 P 1,400 Loss on realization (47,500-30,000) ( 17,500 ) ( 7,500 ) ( 5,000 ) ( 5,000 ) Balances P 5,400 P 3,300 P 5,700( 3,6 00) Additional investment by Olga _1,500 _____– _____– _1,500 Balances P 6,900 P 3,300 P 5,700( 2,1 00) Elimination of Olga's deficiency ______ ( 1,260 ) ( 840 ) _2,100 Payment to partners P 6,900 P 2,040 P 4,860 P 4-13: b RITA SARA TITA Capital balances before liquidation P49,000 P18,000 P10,000 Operating loss, P21,000 ( 3,500) ( 7,000) ( 10,500) Drawings ( 10,000) ( 15,000) ( 20,000) Loans 8,000 25,000 Loss on realization, P12,000 ( 2,000 ) ( 4,000 ) ( 6,000 ) Balances P33,500 P ( 1,500) Absorption of Tita's deficiency __1,500 _____– _1,500 Payment to Nora P32,000 P P 4-14: a CLARO PEDRO ANDRO Capital balances before liquidation P45,000 P27,000
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
P50,000 Loss on realization Accounts Receivable (P50,000 X 40%) P20,000 Investment (P30,000 - P20,000) 10,000 Equipment (P60,000-P30,000) _30,000 Total P60,000 ( 24,000 ) ( 24,000 )( 12, 000 ) Payment to partners P21,000 P 3,000 P38,000 4-15: c TOTAL MONALISA Capital balances before liquidation (inclusive loans)
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 19

CHAPTER 4 - 68 Chapter 4 CHAPTER 4 MULTIPLE CHOICE ANSWERS...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online