NAME: SECTION: SCORE: Multiple Choice PROFESSOR: and 1 . Jactal, Macadang and Pangan are partners with capital balances of P350,000, qual M50,000 and P850.060 and sharing profits 30%, 20% and 50%, respectively. partners agreed to dissolve the business and upon liquidation, all of of the partnership Pisets are sold and sufficient cash is realized to pay all the claims except one for tal 250,000. Pangan is personally insolvent, but the other two partners are able to Preet any indebtedness to the firm. On the remaining claim against the partnership, Mactal is to absorb: a. P15,000 b. P30,000 C . P25,000 d. P40,000 2. partners Ong, Rodriguez, Pamittan and Reyes who share profits and losses at 30%, 30%, 20% and 20%, respectively, decided to liquidate. All par All partnership assets are to he converted into cash. Before liquidation, the condensed statement of financial position follows: Cash Other Assets P 100,000 Liabilities P 750,000 1,800,000 Rodriguez, Loan 60,000 Reyes, Loan 50,000 Ong, Capital 420,000 Rodriguez, Capital 315,000 Pamittan, Capital 205,000 Reyes, Capital 100,000 P1,900,000 P1,900,000 The non-cash assets realized P800,000, resulting to a loss of P1,000,000. All the partners are solvent, and can contribute any additional cash to cover any deficiency. In the process of liquidation, deficiencies will occur and will require additional investment as follows: a. Reyes and Pamittan for P50,000 and P7,500, respectively b. Reyes at P50,000 c. - Pamittan at P7,500 d. None 3. As of Dec. 31, 2019, the books of AEZ Partnership showed capital balances of: Amurao, P40,000; Estoque, P25,000; Zulueta, P5,000. The partners' profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, Chapter 4: Liquidation | 4-4(3000) 204,00 (132, 4, 000 3000 21 201,000 201,050 159. (198,000) (132, 201 , 000 159 , 0 Paraiso Con LIGERal (24,000) 225, 000 102 Assuming that any capital they still have cash of P28,000 left for distribution. deficiency is uncollectible, the share of Amurao in the distribution of cash wouldit a. P17,000 P17,800 C. . P18,000 d. P19,000 andmos, Seechua and Tria are partners in a textile distribution business, shari 4. profits and losses equally. On Dec. 31, 2018, the partnership capital andring Total partners' drawing were as follows: Tria Seechua P480,000 Ramos P300,000 P80,000 20,000 120,000 Capital P100,000 40,000 Drawing 60,000 The partnership was unable to collect on its trade receivables, and it was forced liquidate. The operating profits for 2018 amounted to P72,000, and was exhausted including the partnership assets. Unsettled creditors claim at Dec. 37 2019 amounted to P84,000. Seechua and Tria have substantial private resource but Ramos has no available free assets. The final cash distribution to Tria was: a. P162,000 b. P108,000 C. P 84,000 d. P 78,000 . After operating for five years, the books of the partnership of Lopez and Mendez showed the following balances: Net Assets P130,000 Lopez, Capital 85,000 Mendez, Capital 45,000 If liquidation takes place at this point and the net assets are realized at book value, the partners are entitled to: a., Lopez to receive P97,500 and Mendez to receive P32,500. b. Lopez to receive P90,000 and Mendez to receive P40,000. c. Lopez to receive P85,000 and Mendez to receive P45,000. d. Lopez to receive P65,000 and Mendez to receive P65,000. 6. Garachico, Dugan, Pascua and Cerda are partners, sharing profits in the ratio of 3/21, 4/21, 6/21 and 8/21, respectively. The balances of their capital accounts on Dec. 31, 2019 are as follows: Garachico Dugan Pascua P 1,000 Cerda 25,000 25,000 9,000 P60,000 4-50 | WIN Ballada's Partnership and Corporation Accounting(72,00 132,0 72 00 204,000 (132, 000 (3000) 4, 000 201,000 Co'9d that any capital cash would be: partners decided to liquidate, and they accordingly converted the non- they Issets into P25,200 of cash. After paying the liabilities amountin asse p22,000 to divide. Assume that a debit balance of any partner's capital is amounting to P3,000 , they a. P4,972 Incollectible. The share of Garachico in the loss on realization was: b. P5,200 less, sharing C. P5,257 ital and the P5,400 7. Matias, Pagayanon and Pescasiosa, partners sharing profits and losses based on 1:4:2 decided to liquidate. All assets of the partnership were liquidated. The condensed statement of financial position just prior to liquidation follows: forced to Assets was all Cash Liabilities and Capital Other Assets P100,000 Dec. 31, 400,000 Liabilities P140,000 10,000 sources, Matias, Loan Matias, Capital 45,000 Pagayanon, Capital 105,000 Total Pescasiosa, Capital 200,000 P500,000 Total P500,000 Other assets were sold for P247,500 realizing a loss of P152,500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. ndez Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle the liquidation of the partnership. a. Matias, P6,000 b. Matias, P16,000 c. Pescasiosa, P30,500 d. Pagayanon, P44,000 8. Partners Gumban, Danlag and Escriba who shared profit and losses based on 4:4:2 ratio decided to liquidate. All assets of the partnership were liquidated. The condensed statement of financial position just prior to liquidation follows: P140,000 P100,000 Liabilities 10,000 Cash 400,000 Gumban, Loan 45,000 Other Assets Gumban, Capital 105,000 Danlag, Capital 200,000 Escriba, Capital P500,000 Total P500,000 Total Chapter 4: Liquidation | 430 201.050 (198,00 201,000 (24,000) PS PORCHSO Con LI 225,000 10 . papaterminate the partnership's business thus, necessitson of additions of cash to a partners and in the event of capital deficiency, contributi iffee partners warevent of capital ofrigged answer any Cpifities Fastency. the C . outization of assets, distribution of loss and payment of "cofinal resulted to The d. growing partner's loan and capital accounts balances prior to mal cash settler the Escriba, Laz Danlag, Capital 11. cor Gumban, Gumban, Capital Loan Capital P165,000 P 50,000 165,000 P10,000 P10,000 55,000 160,500 10,000 15,000 44,000 200,000 C . 10,000 (16,000) 105,000 d. 10,000 45,000 On May 1, 2019, the business assets of Jerusalem and Rebusora follow. 12. At Rebusora 40 Jerusalem 22,354 be Cash P 11,000 567,890 Accounts Receivable 234,536 260,102 Inventories 120,035 a. Land 603,000 Building 428,267 Furniture and Fixtures 50,345 34,789 Other Assets 2,000 3,600 Total P1, 020,916 P1,317,002 Accounts Payable P 243,650 13. D Notes Payable P 178,940 Jerusalem, Capital 200,000 345,000 Rebusora, Capital 641,976 Total 728,352 P1,020,916 P1,317,002 Jerusalem and Rebusora agreed to form a partnership contributing their respective assets and equities subject to the following adjustments: are uncollectible. Accounts receivable of P20,000 in Jerusalem's books and P35,000 in Rebusora's respective books. Inventories of P5,500 and P6,700 are worthless in Jerusalem's and Rebusora's books are to be written off. Other assets of P2,000 and P3,600 in Jerusalem's and Rebusora's respective 9. The capital accounts of the partners after the adjustments will be: a. Jerusalem's, P615,942; Rebusora's, P717,894 b. Jerusalem's, P640,876; Rebusora's, P712,345 c. Jerusalem's, P613,576; Rebusora's, P683,350 d. Jerusalem's, P614,476; Rebusora's, P683,052 4-52 | WIN Ballada's Partnership and Corporation Accounting(20,0 132, 00 (72,000) 72000 (132,000) 201,000 139, (3000) 204,000 3000 2100 4, 000 (198,000) (1320 201,00 152,500. Parties agreed to ting distribution of cash to wow much assets does the partnership have? P2,365,218 on of additional cash. The 8 p2,337,918 capital deficiency. The p2,265, 118 liabilities resulted to the C. d. P2,237,918 to final cash settlement : Escriba, Capital contribute ? serna offered to join for a 20% interest in the firm. How much cash should he 165,000 P344,237 a. 165,000 b. P337,487 160,500 P330,870 00,000 d. P324,382 follow: After Lazerna's admission, the profit and loss sharing ratio was agreed to be 12. 10:40:20 based on capital credits. How much should the cash settlement be between Jerusalem and Rebusora? a. P34,288 b . P33,602 C . P32,930 d. P32,272 13. During the first year of operations, the partnership earned P325,000. Profits were distributed in the agreed manner. Drawings were made in these amounts: Jerusalem, P50,000; Rebusora, P65,000; Lazerna, P28,000. How much are the capital balances after the first year? a. Jerusalem, P728,764; Rebusora, P713,764; Lazerna, P361,382 b. Jerusalem, P743,121; Rebusora, P727,825; Lazerna, P368,501 eir respective c. Jerusalem, P750,627; Rebusora, P735,177; Lazerna, P372,223 d. Jerusalem, P757,915; Rebusora, P742,315; Lazerna, P375,837 in Rebusora's d Rebusora's respective