Partnership Liquidation by Installment
CHAPTER 5 MULTIPLE MULT IPLE CHOICE ANSWERS AND SOLUTIONS 5-1:
b RJ
5-2:
SJ
Capital balances before liquidation Loan balances
P22,000 _10,000
P30,000 ______–
P 8,000 ______–
Total interest Possible loss (40,00010,000!
32,000 ( 2",000!
30,000 ( 1",000!
8,000 ( 10,000!
#alances %dditional loss to &' )', "*3
$,000 ( 1,2"0!
1",000 ( $"0!
( 2,000! __2,000
Cash distribution
P 5,750
P14,250
P
–
a AR
5-3:
TJ
BR
CR
DR
Capital balances P 4,"00 Loan balances _____–
P ","00
P ",1"0
P +,8"0
_1,000
_____–
_____–
Total interest Possible loss (23,000+,000! ( 1,$0 1, $00! 0!
+,"00 ( +,800!
",1"0 ( ",100!
+,8"0 ( 3,400!
#alances %dditional loss to #&, C&, -&, 3*2*1 ( "0!
( 300! ___300
(
#alances %dditional loss to C& -&, 2*1 _( 33!
– _____–
( 100! ___100
3,3"0 _( +$!
Payment to partners partners P 2,$1 2, $1$ $
P
P
P 3,283
Total liabilities Total Capital
P 1,000 _22,000
Total %ssets
P23,000
–
"0 1"0!
–
(
3,4"0 100!
c B A L A N C E S DD
Capital balances P2",000 Loan balances %d.ances
EE
FF
GG
P40,000
P30,000
P1",000
",000 _____–
10,000 _____–
– ( 4,"00!
4",000
40,000
10,"00
____"0
____30
____10
"00! Total interest 22,"00 -i.ided b/ PL &atio ____10 Loss %bsorption balances
0,000
133,333
10",000
22",000 P T 55
–
#alances 133,333 P T 66 55, 30*10 ( 28,3 28 ,333 33!! #alances 10,"00 P T 66, 77, 55, 3*1*1 ( 1",0 1" ,000 00!! #alances P0,000 P PL &atio
_____–
_____–
( 1,++$!
0,000
133,333
10",000
_____–
( 28,333!
0,000
10",000
10",000
_____–
(1",000!
( 1",000!
P0,000
P0,000
__ __–
_____–
P0,000
94 Chapter 5 5-3, continued: CASH PAYMENT DD
P To 55 P ,1+$ P To 66 (28,833 9 30! 55 (28,833 9 10! P –To 66 (1",000 9 30! 77 (1",000 9 10! 55 (1",000 9 10! __1,"00
EE
–
– – – – _____–
P 8,433 – 4,"00 – _____–
– – – 1,"00 _____–
–
P12,33
P 1,"00
DD
EE
–
_____–
_+,+2"
–
GG
–
_____–
P +,+2 +, +2" "
–
a TAN
5-5:
–
FF
–
Cash distribution P11,375 P11,375
5-4:
GG
–
Total P13,"00 P PL &atio
-istribution of P18,000 P T 55 P ,1+$ P T 66 55, 3*1, P8,833 __2,208
FF
LM
!AN
Capital balances before liquidation Loss on reali:ation, P40,000
P40,000 ( 1+,000!
P+",000 ( 1+,000!
P48,000 ( 8,000!
Capital balances before cas; distribution Possible loss, P0,000
24,000 ( 3+,000!
4,000 ( 3+,000!
40,000 ( 18,000!
#alances %dditional loss to Li< =an, 4*2
( 12,000! _12,000
13,000 ( 8,000!
22,000 ( 4,000!
Cash distribution
P
b
–
P 5,000
P18,000