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Carrying Amount of Asset Sold 182,400

The document contains multiple choice questions and scenarios involving the liquidation of partnerships. The scenarios provide financial information before and after the liquidation process including cash, non-cash assets, capital accounts, and payments to partners. The questions require analyzing the information to determine the correct option that completes the scenario.

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Serenity Carlye
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77 views

Carrying Amount of Asset Sold 182,400

The document contains multiple choice questions and scenarios involving the liquidation of partnerships. The scenarios provide financial information before and after the liquidation process including cash, non-cash assets, capital accounts, and payments to partners. The questions require analyzing the information to determine the correct option that completes the scenario.

Uploaded by

Serenity Carlye
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Multiples Choices

A.

Cash Ryan, Capital (25%) Ivan, Capital (25%) Mark, Capital (50%)
35,000 20,000 (15,000) 30,000
Capital deficiency (5,000) 15,000 (10,000)
of Ivan absorbed
by Ryan and Mark
in ratio of 1:2
Balances 35,000 15,000 0 20,000
Payments to (35,000) (15,000) (20,000)
partners in
settlement of
capital
0 0 0 0

1. B
2. C

B. .

Cash Non-Cash Liabilities Connie, Capital Miriam Capital


Balance before liquidation 50,000 150,000 50,000 90,000 60,000
Sales of asset 100,000 (150,000) (35,000) (15,000)
Balance 150,000 0 50,000 55,000 45,000
Payment of liabilities (50,000) (50,000)
Payments to partners in 100,000 55,000 45,000
settlement of capital

3. C

C. .
Before the sale – 48,000 + 12,000 + 62,000 = 122,000
After the sale – 32,800 + 10,800 + 24,000 = - 67,600
Total (Loss in realization) 54,400
Add: Amount of sold non-cash +128,000
Carrying amount of asset sold 182,400

4. B

D. .
Cash Non-Cash Liabilities Annie, Capital Jovy, Capital
Balances before 100,000 30,000 40,000 30,000
liquidation
Sales of asset 79,000 (12,600) (8,400)
Balances 79,000 27,400 21,600
Payment of liability (30,000) (49,000)
Balances 49,000 0 27,400 21,600
Payment to partners (49,000) (27,400) (21,600)
in settlement of
capital

5. B
6. C

E. .

Cash Mikee, Capital Teeny, Capital Jenny, Capital


240,000 112,000 104,000 24,000
Payment to (240,000) (112,000) (104,000) (24,000)
partners in
settlement of
capital
7. C

Cash Mikee, Capital Teeny, Capital Jenny, Capital


204,000 112,000 104,000 (12,000)
Capital (9,000) (3,000) 12,000
deficiency of
Jenny absorb by
Mikee and
Teeny in ratio
6:2
Balances 204,000 103,000 101,000 0
Payment to (204,000) (103,000) (101,000)
partners in
settlement of
capital
8. B
F. .

Cash Non-Cash Liabilities Lorna, Capital Aida, Capital Fe, Capital

Before liquidation 60,000 270,000 135,000 75,000 90,000 30,000


Sale of asset 232,500 (270,000) (15,000) (11,250) (11,250)
Balances 292,500 135,000 60,000 78,750 18,750
Payment of liabilities (135,000) (135,000)
Balances 157,500 0 0 60,000 78,750 18,750
Payment to partner (157,500) (60,000) (78,750) (18,750)
in settlement of
capital

9. C
10. B

G. .

D, Capital T, Capital M, Capital


balance 65,000 (30,000) (4,000)
Add 10,000 15,000 30,000
balance 75,000 (15,000) 26,000
Less (40,000)
balance 75,000 (15,000) (14,000)
(29,000) 15,000 14,000
Total 46,000 0 0

11. C

H. .

Cash N-Cash Liabilities DD, Capital EE. Capital FF, Capital


Before 25,200 105,600 34,800 33,600 43,200 19,200
liquidation
Sales of asset 124,800 (105,000 8,640 4,800 5,760
)
Balances 150,000 0 42,240 48,000
Payment of (34,800) (34,800)
liabilities
Balances 115,200 0 0 42,240 48,000 24,960
Payment to (115,200 (42,240) (48,000) (24,960)
partners in )
settlement of
capital
12. B

I. .

Cash N-Cash R, Loan Liabilities S, Loan R,Capital S,Capital T,Capital


Balance before 103,750 707,500 15,000 262,500 20,000 266,250 136,250 141,250
liquidation
Sales of asset 495,000 (707,500) (63,750) (106,250) (42500)
Balance 598,750 202,500 30,000 98,750
Payment of (262,500) (262,500)
liabilities
Balance 336,250 202,500 30,000 98,750
Payment to S in (20,000) 20,000
settlement of loan

Balances 336,250 0 15,000 0 0 202,500 50,000 98,750


Payment from R in (15,000) (15,000)
settlement of loan

Balances 336,250 187,500 50,000 98,750


Payment to (336,250) (187,500) (50,000) (98,750)
partners in
settlement of
capital

13. C

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