Get Answer

Ask a new question

Question

Answer questions 1-10

• Attachment 1
• Attachment 2
• Attachment 3

ATTACHMENT PREVIEW

Download attachment

9. Pepe, Pilar and Paz Partnership showed the following financial position before they

decided to liquidate on July 31, 2019 because of personal differences:

Cash

P 70,000

Other Assets

Liabilities

P280,000

530,000

Loan Payable, Pepe

30,000

Pepe, Capital

65,000

Pilar, Capital

90,000

Paz, Capital

135,000

Total Assets

P600,000

Total Equities

P600,000

The partners share profits and losses equally. The other assets were all sold at a loss of

P315,000. Liquidation expenses of P15,000 were also paid. Partnership became

insolvent. The partners' personal records showed the following:

Personal Assets

Personal Liabilities

Pepe (general partner)

P 75,000

P 50,000

Pilar (general partner)

1 12,000

37,000

Paz (general partner)

130,000

170,000

Direction:

a) Prepare statement of partnership liquidation listing the sale, payment to the creditors from

partnership cash, balance of unpaid account paid by Pepe, partners make cash settlement

among themselves.

b) Marshalling of assets: Other than the personal assets of P130,000, by how much more

can the personal creditors of Paz get additional payment from the other partners?

10. Using Exercise 9, start with the balances after payment of partnership liabilities:

a) Prepare statement of liquidation assuming this time that Pepe is a limited partner

and all other partners make payment accordingly based on their personal resources.

b) Partnership creditors (outside creditors and Pepe) collect from Pilar.

c) Marshalling of assets: Other than the personal assets of P 130,000, by how much more

can the personal creditors of Paz collect from the other partner(s)?