Advanced Accounting Lupisan 3a

AA1 -Chapter 3 (2008 edition))s
page 1
Exercise 3 7
Balances before liquidation

Sale of other assets & distribution of loss
Balances
Payment of liabilities
Balances
Offset of loan
Additional investment by Velasco
Balances
Asset distributed to Viola
Balances
July sale of assets and distribution of loss
Balances
Balances
Possible loss on remaining other assets
Cash distribution to partners
Cash
P 80,000
200,000
P280,000
( 280,000)
--90,000
P 90,000
P 90,000
540,000
P630,000
(350,000)
P280,000
P280,000
Other
Assets
P960,000
( 300,000)
P660,000
P660,000
P660,000
( 200,000)
P460,000
( 400,000)
P 60,000
P 60,000
( 60,000)
-----
Liabilities
P630,000
Velasco
Loan
P 50,000
P630,000
( 280,000)
P350,000
P 50,000
P350,000
----
P350,000
-----
P350,000
( 350,000)
------
-----
-----
----
P 50,000
( 50,000)
----
Viola
P470,000
( 60,000)
P410,000
P410,000
CAPITAL
Velasco
(P140,000)
( 20,000)
(P160,000)
Vicente
P30,000
( 20,000)
P10,000
P10,000
P410,000
( 212,000)
P198,000
84,000
P282,000
(P160,000)
50,000
90,000
(P 20,000)
6,000
(P 14,000)
28,000
P 14,000
P282,000
( 36,000)
P246,000
P 14,000
( 12,000)
P 2,000
P44,000
( 12,000)
P32,000
P10,000
6,000
P16,000
28,000
P44,000
Chapter 3 Partnership Liquidation

Suggested Answers
page
PROBLEMS
Problem 3-1
1.
Profit and loss ratio

Sale of non-cash assets and distribution of loss
Payment of liquidation expenses
Balances
Balances
Additional investment of Elma
Balances
Payment to partners
Elma, Erica and Edna

Statement of Liquidation
January 1 31, 2008
Non-cash
Cash
Assets
Liabilities
P 80,000
634,000
( 24,000)
P690,000
(270,000)
P420,000
15,000
P435,000
( 435,000)
P810,000
(810,000)
P270,000
P270,000
(270,000)
Elma
3/8
P60,000
(66,000)
( 9,000)
(P15,000)
(P15,000)
15,000
C A P I T A L
Erica
Edna
3/8
2/8
P290,000
P270,000
( 66,000) ( 44,000)
( 9,000) ( 6,000)
P215,000
P220,000
P215,000
P220,000
P215,000
( 215,000)
P220,000
( 220,000)

Suggested Answers
page
2.
Elma , Erica and Edna
Cash
Sale of non-cash assets and distribution of loss
Balances
Balances
Offset of loan against debit balance in the
capital balance of Elma
Balances
Payment to partners
3.

Sale of non-cash assets and distribution of

loss
Balances
Balances
Offset of receivable against credit balance in
the capital of Erica
Balances
P 80,000
634,000
(24,000)
P690,000
(200,000)
P490,000
January 1 31, 2008
Non-cash Note Payable
Assets
to Elma
P810,000
(810,000)
P70,000
P200,000
P70,000
P200,000
(200,000)
P70,000
( 15,000)
P490,000
P55,000
(490,000)
( 55,000)
Elma , Erica and Edna
January 1 31, 2008
NR from
Non-cash
Cash
Assets
Erica
P 80,000
634,000
(24,000)
P690,000
(200,000)
P490,000
C A P I T A L
Liabilities
P110,000
P700,000
(700,000)
Elma
Erica
Edna
3/8
P60,000
(66,000)
( 9,000)
(P15,000)
3/8
P290,000
( 66,000)
( 9,000)
P215,000
2/8
P270,000
( 44,000)
( 6,000)
P220,000
(P15,000)
P215,000
P220,000
P215,000
( 215,000)
P220,000
( 220,000)
15,000
NP
to Elma
P70,000
C A P I T A L
Liabilities
Elma
Erica
Edna
P200,000
3/8
P60,000
(24,750)
3/8
P290,000
( 24,750)
2/8
P270,000
( 16,500)
( 9,000)
P26,250
( 9,000)
P256,250
( 6,000)
P247,500
P110,000
P70,000
P200,000
(200,000)
P110,000
P70,000
P26,250
P256,250
P247,500
P70,000
P26,250
( 110,000)
P146,250
P247,500
(110,000)
P490,000

Suggested Answers
Payment to partners
Problem 3 2 (Case 1)
page
(490,000)
( 70,000)
Calma, Daza and Esteban

January, 2009
Other
Cash
Assets
Liabilities
Sale of assets & distribution of loss
Balances
Payment of to partners
P 20,000
250,000
P 270,000
( 112,000)
P 158,000
P 340,000
(340,000)
-
( 26,250)
L O A N
Daza
Esteban
( 146,250)
( 247,500)
P 112,000
P 5,000
P 8,000
P 112,000
(112,000)
-
P 5,000
P 8,000
C
A
Calma
(2/5)
P 95,000
(36,000)
P 59,000
I
T
Daza
(2/5)
P 60,000
(36,000)
P 24,000
A L
Esteban
(1/5)
P 80,000
(18,000)
P 62,000
P 5,000
P 8,000
P 59,000
P 24,000
P 62,000
I
T A L
Daza
Esteban
(2/5)
(1/5)
P 60,000
P 80,000
(62,000)
(31,000)
P( 2,000) P 49,000
January, 2009
Other
Cash
Assets
Liabilities
Balances
Balances
capital account
Payment to partners
P 20,000
185,000
P 205,000
( 112,000)
P 93,000
P 93,000
P 340,000
(340,000)
-
P 112,000
P 5,000
P 8,000
P 112,000
(112,000)
-
P 5,000
P 8,000
C
A
Calma
(2/5)
P 95,000
(62,000)
P 33,000
P 5,000
P 8,000
P 33,000
P( 2,000)
P 49,000
P 33,000
2,000
-
P 49,000
L O A N
Daza
Esteban
(2,000)
P 3,000
P 8,000

Suggested Answers
page
Cash
Balances
Balances
capital account
Balances
Payment to partners
Balances
Additional investment by Daza
Payment to partners

January, 2009
Other
Assets
Liabilities
P 20,000
170,000
P 190,000
( 112,000)
P 78,000
P 78,000
( 78,000)
3,000
P 3,000
P 340,000
(340,000)
-
L
Daza
O A N
Esteban
P 112,000
P 5,000
P 8,000
P 112,000
(112,000)
-
P 5,000
P 8,000
C
A
Calma
(2/5)
P 95,000
(68,000)
P 27,000
P 5,000
P 8,000
P 27,000
(5,000)
-
P 8,000
( 8,000)
-
P 27,000
( 25,000)
P 2,000
P 2,000
P I
T A L
Daza
Esteban
(2/5)
(1/5)
P 60,000
P 80,000
(68,000)
(34,000)
P( 8,000) P 46,000
P( 8,000)
5,000
P(3,000)
P(3,000)
3,000
-
P 46,000
P 46,000
(45,000)
P 1,000
P 1,000

Suggested Answers
page
Problem 3- 2 (Case 4)
January, 2009
Cash
Balances
Balances
capital account
Balances
Payment to partners
Balances
Additional investment by Daza
Payment to partners
P 20,000
125,000
P 145,000
( 112,000)
P 33,000
P 33,000
( 33,000)
21,000
P 21,000
Other
Assets
P 340,000
(340,000)
-
Liabilities
L
Daza
O A N
Esteban
P 112,000
P 5,000
P 8,000
P 112,000
(112,000)
-
P 5,000
P 8,000
C A
Calma
(2/5)
P 95,000
(86,000)
P 9,000
P 5,000
P 8,000
P 9,000
P(26,000)
P 9,000
5,000
P(21,000)
P 9,000
(5,000)
-
P 8,000
( 8,000)
-
P 9,000
P I
T
Daza
(2/5)
P 60,000
(86,000)
P(26,000)
A L
Esteban
(1/5)
P 80,000
(43,000)
P 37,000
P 37,000
P(21,000)
21,000
-
P 37,000
(25,000)
P 12,000
P 12,000

Suggested Answers
page
January, 2009
Other
Cash
Assets
Liabilities
Balances
Balances
capital account
Balances
Additional investment by Calma and Daza
Payment of liabilities, loan and capital
P 20,000
90,000
P 110,000
( 110,000)
40,000
P 40,000
P 340,000
(340,000)
-
L O A N
Daza
Esteban
P 112,000
P 5,000
P 8,000
P 112,000
(110,000)
P 2,000
P 5,000
P 8,000
C A
Calma
(2/5)
P 95,000
(100,000)
P( 5,000)
P 5,000
P 8,000
P( 5,000)
P(40,000)
P( 5,000)
5,000
-
5,000
P(35,000)
35,000
-
2,000
(5,000)
-
2,000
P 8,000
P 8,000
I
T
A L
Daza
Esteban
(2/5)
(1/5)
P 60,000 P 80,000
(100,000)
(50,000)
P(40,000) P 30,000
P 30,000
P 30,000
P 30,000

Suggested Answers
page
Problem 3-4
1.
Estrella, Capital
Estrella, Drawing
Total interest of Estrella
Cash received by Estrella
P 144,000
( 12,000)
P 132,000
111,000
Share of Estrella in the loss on P 21,000
liquidation
Fractional share of Estrella
Total loss on liquidation
3.
2/10
P 105,000
a.
b.
c.
Cash
Eugenio, Capital
Esteban, Capital
Estrella, Capital
Other Assets
463,000
52,500
31,500
21,000
Liabilities
Cash
200,000
Esteban, Loan
Eugenio, Capital
Esteban, Capital
Estrella, Capital
Cash
40,000
79,500
102,500
111,000
568,000
200,000
333,000
2.
Eugenio , Esteban and Estrella
January 1 31, 2008

Sale of other assets & distribution of loss
Balances
Balances
Payment to partners
Cash
P 70,000
463,000
P 533,000
(200,000)
P 333,000
( 333,000)
Other
Assets
P 568,000
( 568,000)
Liabilities
P 200,000
P 200,000
( 200,000)
Esteban,
Loan
P 40,000
P 40,000
Eugenio
(5/10)
P 132,000
( 52,500)
P 79,500
P 40,000
( 40,000)
P 79,500
( 79,500)
CAPITAL
Esteban
Estrella
(3/10)
(2/10)
P 134,000
P132,000
( 31,500) ( 21,000)
P 102,500
P 111,000
P 102,500
(102,500)
P 111,000
( 111,000)

Suggested Answers
page
Problem 3 - 6
QRS Partnership
July to September, 2008

July:
Sale of assets
Payment of loan
Balances
August: Sale of assets
Payment of loan and capital
Balances
Sept.: Sale of assets
Additional loss to Roman & Silva
Payment to partners
Accounts
Payable
P1,215,000
Roman,
Loan
P150,000
Other Assets
P2,010,000
( 1,530,000)
(
P
Cash
150,000
1,170,000
1,215,000)
7,500)
97,500
67,500)
30,000
66,000
7,500)
88,500
58,500)
30,000
165,000
7,500)
187,500
41,400
187,500
41,400
P
(
(
P
(
P
(
P
(
P
Quizon
P300,000
( 180,000)
C A P I T A L
Roman
Silva
P270,000
P225,000
( 108,000)
( 72,000)
( 1,215,000)
P 480,000
P 480,000
( 105,000)
P 375,000
P 375,000
( 375,000)
P150,000
( 67,500)
P 82,500
P 82,500
( 41,100)
P 41,400
( 3,750)
P116,250
( 2,250)
P159,750
( 1,500)
P151,500
P116,250
( 19,500)
( 3,750)
P 93,000
P159,750
( 11,700)
( 2,250)
P145,800
P 93,000
( 105,000)
( 3,750)
(P 15,750)
15,750
-
P145,800
( 63,000)
( 2,250)
P 80,550
( 9,450)
P 71,100
P151,500
( 7,800)
( 1,500)
P142,200
( 17,400)
P124,800
( 42,000)
( 1,500)
P 81,300
( 6,300)
P 75,000

Suggested Answers
page
Problem 3 - 5
JKLM Trading
February 1 - March 31, 2008

February:
Balances
Payment to partners (sch. 1)
Balances
March:
Sale of assets & distribution of gain
Balances
Payment to partners (sch. 2)
Balances, March 31
Cash
P 100,320
49,320
( 17,750)
( 8,220)
P 123,670
( 120,060)
P 3,610
(
(
P
(
P
48,330
3,610)
7,380)
40,950
40,950)
---------
Other
Assets
P 193,530
Liabilities
P 21,360
Jocson
Loan
P 15,000
( 66,060)
C
A
Jocson
P 24,120
P
I
Kaimo
P 96,480
T
A
Legarda
P 109,020
L
Manabat
P 27,870
( 3,348)
( 5,022)
( 5,022)
( 3,348)
( 1,644)
P 19,128
( 2,466)
P 88,992
(49,770)
P 39,222
( 2,466)
P 101,532
( 62,310)
P 39,222
( 1,644)
P 22,878
( 17,750)
P 127,470
P 3,610
P 127,470
P 3,610
P 15,000
( 7,980)
P 7,020
( 44,850)
P 19,128
696
1,044
1,044
P 22,878
696
( 3,610)
P 82,620
p --------
P 82,620
P --------
P 7,020
7,020
P -------
( 1,476)
P 18,348
( 1,824)
P 16,524
( 2,214)
P 38,052
(13,266)
P 24,786
( 2,214)
P 38,052
( 13,266)
P 24,786
( 1,476)
P 22,098
( 5,574)
P 16,524

Suggested Answers
page
Problem 3 - 8
Req. 2
Neri, Ordan and Pacia
January 1 - March 31, 2008

January:
Collections from customers
Balances
Payment to partners (see schedule)
Balances
February:
Collections from customers
Payment of liabilities & dist. of gain
Balances
Payment to partners (see schedule)
Balances
March:
Collections from customers & dist. of
loss
Payment to partners
Cash
P 19,000
Other
Assets
P 191,000
112,000
( 4,400)
( 38,000)
P 88,600
( 16,000)
P 72,600
(112,000)
36,000
( 2,800)
(38,000)
P 67,800
( 19,800)
P 48,000
( 36,000)
Liabilities
P 77,000
P 79,000
( 38,000)
P 39,000
P 79,000
P 39,000
Pacia,
Loan
P 9,000
P 9,000
( 9,000)
-
P 43,000
( 39,000)
-
P 43,000
35,000
( 43,000)
( 4,000)
P( 79,000)
Sal. Pay.
to Neri
P 6,000
C A P I T
Neri
Ordan
P 50,000
P 28,000
A L
Pacia
P 40,000
( 2,200)
( 1,100)
( 1,100)
P 6,000
P 47,800
P 26,900
P 6,000
P 47,800
P 26,900
P 38,900
( 7,000)
P 31,900
P 6,000
( 6,000)
-
( 1,400)
500
P 46,900
( 1,400)
P 45,500
700)
250
P 26,450
( 3,700)
P 22,750
700)
250
P 31,450
( 8,700)
P 22,750
( 4,000)
( 2,000)
( 2,000)
( 2,000)
P 39,500
( 1,000)
P 19,750
( 1,000)
P 19,750

Suggested Answers
page
Problem 3 -8
Requirement No 1
Neri, Ordan and Pacia

Cash Priority Program
January 1, 2008
Neri
Capital balances before liquidation
P 50,000
Add Loan balances
6,000
Total partners interest
P 56,000
50%
Loss absorption balance
P112,000
allocation I - Cash to Pacia reducing LAB to an amount reported
for Neri and Ordan. Reduction of P84,000 requires payment
of 25% of P 84,000
Balances
P112,000
Allocation II - Further cash distributions may be made in the profit and loss raio
SCHEDULE OF CASH DISTRIBUTION:
Amount
January:
Cash available
P 16,000
Allocation I:
Payable to Pacia
16,000
February:
Cash available
Allocation I:
Payable to Pacia
Allocation II
Payable according
to P & L ratio
Neri
-
Ordan
Pacia
---------
P 16,000
P 19,800
5,000
P 14,800
-
P 5,000
P 7,400
P 7,400
P 3,700
P 3,700
3,700
P 8,700
Ordan
P 28,000
Neri
P 28,000
25%
P112,000
Pacia
P 40,000
9,000
P 49,000
25%
P196,000
P112,000
( 84,000)
P112,000
_______
--------
Ordan
Pacia
_______
---------
P 21,000
P 21,000

Suggested Answers
page
Problem 3 - 7
Requirement 3
Tabora, Ureta and Veloso
January 1 to April 30, 2008

January:
Sale of assets
Payment to partners
Balances
February:
Sale of assets
Payment to partners
Balances
March:
Sale of assets
Payment to partners
Balances
April:
Balances
Payment to partners
Cash
15,000
(15,000)
40,000
( 40,000)
Other
Assets
P 338,000
30,000
P 30,000
(30,000)
A
N
Ureta
Veloso
P 30,000 P 13,000
C A P I T A L
Tabora
Ureta
Veloso
P 120,000 P 90,000
P 40,000
P 45,000
(15,000)
P15,000
P 13,000
P 120,000
P 90,000
P 40,000
( 21,250)
P 23,750
(15,000)
-
P 13,000
P 120,000
( 3,750)
P 86,250
P 40,000
(23,750)
-
(13,000)
-
( 23,500)
P 96,500
( 28,350)
P 57,900
( 1,400)
P 38,600
( 81,500)
P 15,000
P 15,000
( 48,900)
P 9,000
P 9,000
(32,600)
P 6,000
P 6,000
( 15,000)
P 323,000
( 40,000)
P 283,000
90,000
( 90,000)
-
L
Tabora
P 45,000
( 90,000)
P 193,000
( 193,000)
-

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AA1 -Chapter 3 (2008 edition))s

Balances before liquidation

Chapter 3 Partnership Liquidation

Profit and loss ratio

Elma, Erica and Edna

Chapter 3 Partnership Liquidation

Elma , Erica and Edna

Profit and loss ratio

Sale of non-cash assets and distribution of

Chapter 3 Partnership Liquidation

Calma, Daza and Esteban

Chapter 3 Partnership Liquidation

Calma, Daza and Esteban

Chapter 3 Partnership Liquidation

Chapter 3 Partnership Liquidation

Chapter 3 Partnership Liquidation

Balances before liquidation

Chapter 3 Partnership Liquidation

Balances before liquidation

Chapter 3 Partnership Liquidation

Balances before liquidation

Chapter 3 Partnership Liquidation

Balances before liquidation

Chapter 3 Partnership Liquidation

Neri, Ordan and Pacia

Chapter 3 Partnership Liquidation

Balances before liquidation

Chapter 3 Partnership Liquidation

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