2nd Quiz Midterm Acctg12
2nd Quiz Midterm Acctg12
1. The partnership of Rivera, Coloradio and Reyes share profits and losses in the ratio of 5:3:2, respectively. The partners voted to
dissolve the partnership when its assets, liabilities, and capital were as follows:
Assets Liabilities and Capital
Cash P40,000 Liabilities P60,000
Other assets 210,000 Rivera, Capital 48,000
Colorado, Capital 72,000
Reyes, Capital 70,000
Total ------------- Total ----------------
P250,000 P250,000
------------- -----------------
The partnership will be liquidated over a prolonged period of time. As cash is available it will be distributed to the partners. The first sale
of non-cash assets having a book value of P120,000 realized P90,000. How much cash should be distributed to each partner after this
sale?
2. Corleto, Samonte and Bibonia are partners sharing profits and losses in the ratio of 4:3:3, respectively. The condensed statement
of financial position of CSB Partnership as of Dec. 1, 2016 is:
Cash P50,000 Liabilities P40,000
Other Assets 130,000 Corleto, Capital 60,000
Samonte, Capital 40,000
Bibonia, Capital 40,000
------------- --------------
P180,000 P180,000
------------- --------------
The CSB Partnership was dissolved and liquidated by installments. The first realization of P40,000 cash was on the sale of other
assets with book value of P80,000. After the payment of the liabilities, how should the cash available be distributed to Corleto, Samonte
and Bibonia?
3. The following statement of financial position is presented for the partnership of Villanueva, Pozon and Yecyec who share profits
and losses in the ratio of 5:3:2, respectively.
Assets Liabilities and Capital
Cash P120,000 Liabilities P280,000
Other assets 1,080,000 Villanueva, Capital 560,000
Pozon, Capital 320,000
Yecyec, Capital 40,000
Total -------------- Total -----------------
P1,200,000 P1,200,000
-------------- -----------------
Assume that the partners decided to liquidate the partnership. If the other assets were sold for P800,000, how should the
available cash be distributed?
The partnership has liabilities amounting to P1,100,000, including a loan from C (P150,000). Cash on hand before the start of
liquidation is P200,000.
6. Noncash assets amounting to P1,850,000 were sold at book value and the rest of the noncash assets will be sold at a loss of
P1,050,000. How much cash will be distributed to the partners?
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7. After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their personal
liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount
due to the partner/s?
8. If C received P563,750, How much was the loss from the realization of the noncash assets?
9. A, B and C are partners in a business being liquidated. The partnership has cash of P22,000, noncash assets with a book value of
P264,000 and liabilities of P173,250. The following data relates to the patterns as of June 1, 2013:
(a) A has a capital balance of P129,250, personal assets of P27,500, personal liabilities of P13,750.
(b) B extended a loan to the partnership in the amount of P13,750,deficit of P38,500, personal asset of P41,250,personal
liabilities of P16,500.
(c) C has a capital balance of P8,250, personal assets of P68,750 and personal liabilities of P41,250.
(d) Their profit and loss ratio is 3:1:1, A, B and C, respectively.
On June 12, 2013, assets with a book value of P82,500 were sold for P55,000 cash. The proceeds were used to pay off liabilities of the
partnership. During the remainder of June, no additional assets were realized and outside creditors began to pressure the partnership
for payment.
On July 3, the partners agreed to contribute personal assets, to whatever extent possible, in order to eliminate their respective deficits.
Shortly thereafter, assets with book value of P55,000 and a fair value of P63,250 were distributed to A.
Assuming additional noncash assets with book value of P110,000 were sold in July for P148,500.
How much cash would be distributed to C?
10. JCA Partnership is entering into liquidation and you are given the following account balances:
During June, noncash assets with a book value of P1,875,000 were sold for P1,600,000. JCA paid P175,000 for the liquidation
expenses it incurred and it also paid half of its liabilities to outside creditors. Creditors whose account balances amount to P150,000
decided to condone JCAs liabilities to of the cash received from the sale of noncash assets were distributed to the partners.
How much is (a) Js share in the maximum possible loss? (b) As interest after the first cash distribution?
11. SCA Partnership has the following account balances before liquidation:
Cash P 350,000 Liabilities P 1,125,000
Noncash assets 7,375,000 Loan from A 50,000
Loan to C 150,000 S, Capital (40%) 1,250,000
Receivable from S 20,000 C, Capital (40%) 1,900,000
Expenses 2,230,000 A, Capital (20%) 1,000,000
Revenues 4,800,000
During June, some noncash assets were sold that results to a loss of P46,125. Liquidation expenses of P175,000 were paid
and additional expenses amounting to P90,000 were expected to be incurred through the following months of liquidation the
partnership. Liabilities to outsiders amounting to P875,000 were paid.
What is the book value of the noncash assets which were sold for C to receive P555,550?
The partnership of C, A, and G decided to liquidate their partnership on May 31, 2013. Before liquidating and sharing of net income,
their capital balances are as follows: C (30%) P1,250,000, A (30%) P900,000, and G (40%) P1,100,000. Net income from January 1 to
May 31 is P600,000. Liabilities of the partnership amounted to P1,050,000 and its total assets include cash amounting P350,000.
Unsettled liabilities are P550,000. C invested additional cash enough to settle their partnerships indebtedness. A is personally solvent,
G is personally insolvent, and C becomes insolvent after investing the cash needed by the partnership.
The statement of financial position of Claire, Karen, and Myrtle on July 1, 2012, when they decided to liquidate is as follows:
PBB TEENS PARTNESHIP
Statement of Financial Position
As of July 1, 2012
Required: The cash distributed to Claire, Karen and Myrtle for each of the following independent cases:
15. The other assets were sold for P 420,000
16. The other assets were sold for P 222,000.
17. The other assets were sold for P 204,000. Deficient partner was solvent.
18. The other assets were sold for P 204,000. Deficient partner was insolvent.
Cash is realized for other assets as follows, and amounts realized are distributed at the end of each month to the appropriate parties.
2012 Asset Book Value Cash Proceeds
January P 300,000.00 P 260,000.00
February 200,000.00 230,000.00
ANSWER SHEET
NAME:
Erasures and/or any form of modifications or alterations of your answers will be considered wrong.
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