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CHAPTER 5 - Partnership Liquidation by Installment 83...

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Unformatted text preview: Partnership Liquidation by Installment 83 CHAPTER 5 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 5-1: b RJ SJ TJ Capital balances before liquidation P22,000 P30,000 P 8,000 Loan balances _10,000 ______– ______– Total interest 32,000 30,000 8,000 Possible loss (40,000+10,000) ( 25,000 ) ( 15,000 ) ( 10,000 ) Balances 7,000 15,000 ( 2,000) Additional loss to RJ & SJ, 5:3 ( 1,250 ) ( 750 ) __2,000 Cash distribution P 5,750 P14,250 P – 5-2: a AR BR CR DR Capital balances P 5,500 P 5,150 P 6,850 P 4,500 Loan balances _1,000 _____– _____– _____– Total interest 6,500 5,150 6,8504,500 Possible loss (23,000-6,000) ( 6,800 ) ( 5,100 ) ( 3,400 ) ( 1,700 ) Balances ( 300) 50 3,4502,800 Additional loss to BR, CR, DR, 3:2:1 ___300 ( 150 ) ( 100 ) ( 50 ) Balances – ( 100) 3,3502,750 Additional loss to CR & DR, 2:1 _____– ___100 _( 67 ) _( 33 ) Payment to partners P – P – P 3,283 P 2,717 Total liabilities P 1,000 Total Capital _22,000 Total Assets P23,000 5-3: c B A L A N C E S DD EE FF GG Capital balances P40,000 P30,000 P15,000 P25,000 Loan balances 5,000 10,000 – – Advances _____– _____– ( 4,500 ) ( 2, 500 ) Total interest 45,000 40,000 10,500 22,500 Divided by P/L Ratio ____50 % ____30 % ____10 % ____10 % Loss Absorption balances 90,000 133,333 105,000 225,000 PI - TO GG – _____– _____– ( 91,667 ) __ __– Balances 90,000 133,333 105,000 133,333 PII - TO EE & GG, 30:10 _____– ( 28,333 ) _____– ( 28,333 ) Balances 90,000 105,000 105,000 10,500 PIII - TO EE, FF, GG, 3:1:1 _____– (15,000 ) ( 15,000 ) ( 15,000 ) Balances P90,000 P90,000 P90,000 P90,000 PIV - P/L Ratio 84 Chapter 5 CASH PAYMENT DD EE FF GG PI - To GG – – – P 9,167 PII - To EE (28,833 X 30%) – P 8,433 – – GG (28,833 X 10%) – – –2,833 PIII –To EE (15,000 X 30%) – 4,500 – – FF (15,000 X 10%) – – 1,500 – GG (15,000 X 10%) _____– _____– _____– __1,500 Total – P12,933 P 1,500 P13,500 PIV - P/L Ratio DD EE FF GG Distribution of P18,000 PI - TO GG – – – P 9,167 PII - TO EE & GG, 3:1, P8,833 _____– _6,625 _____– __2,208 Cash distribution – P 6,625 – P11,375 5-4: a TAN LIM WAN Capital balances before liquidation P40,000 P65,000 P48,000 Loss on realization, P40,000 ( 16,000 ) ( 16,000 ) ( 8,000 ) Capital balances before cash distribution 24,000 49,000 40,000 Possible loss, P90,000 ( 36,000 ) ( 36,000 ) ( 18,000 ) Balances ( 12,000) 13,000 22,000 Additional loss to Lim & Wan, 4:2 _12,000 ( 8,000 ) ( 4,000 ) Cash distribution P – P 5,000 P18,000 5-5: b TAN LIM WAN Capital balances before cash distribution P24,000 P49,000 P40,000 Possible loss (90,000+3,000) ( 37,200 ) ( 18,600 ) ( 18,600 ) Balances ( 13,200) 30,400 21,400 Additional loss to Lim & Wan, 4:2 _13,200 ( 8,800 ) _( 4,400 ) Cash distribution P – P21,600 P17,000 5-6: d Tan (14,000 X 40%) P5,600 Lim (14,000 X 40%) P5,600 Wan (14,000 X 20%) P2,800 5-7: a CARPIO LOBO Capital balances before liquidation P72,000 P54,000 Goodwill written-off ( 5,000 ) ( 5,000 )...
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CHAPTER 5 - Partnership Liquidation by Installment 83...

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