Partnership Liquidation

1)The following condensed balance sheet of the partnership of X, Y an z , who share profits and losses in
the ratio of 4:3:3, is shown below:
Cash 160,000
Other Assets 320,000
Total 480,000

Liabilities 180,000
X, Capital 48,000
Y, Capital 216,000
Z, Capital 36,000
480,000

The partners agreed to dissolve the partnership after selling the other assets for P200,00. How
much should each of the partners receive?

2) W, X and Y are partners sharing profits and losses in the ratio of 4:3:3, respectively. The condensed
balance sheet of Hello partnership as of December 31, 2020 is shown =below:
Cash 50,000
Other assets 130,000
Total assets 180000

Liabilities 40,000
W, Capital 60,000
X, Capital 40,000
Y, Capital 40,000
Total Liabilities and Capital 180,000

Assume that the Hello Partnership is dissolved and liquidated by installments, and the first realization
of P40,000 cash is on the sale of other assets with book value of P80,000. After the payment of liabilities,
the available cash shall be distributed to the partners as follows: W- ___________
X-____________
Y-____________ (PHLCPA)

3) The partners of the M & N Partnership liquidated their business on July 1, 2020, at which time the partners
were sharing profits and losses 40% for M and 60% for N. The balance sheet of the partners is shown below:
Assets Liabiities and Equities
Cash 8,800 Accounts Payable 32,400
Receivables 22,400 N,,Loan 14,000
Inventory 39,400 M, Capital (less drawing of P5,400) 25,600
Euipment (less A/D of P30,800) 34,400 N, Capital (less drawing of P200) 33,000
105,000 105,000

During the month of July, the partners collected P600 of the receivables with no loss. The partners also sold during
the month the entire inventory on which they realized a total of P32,400.How much cash would each of the partners
receive? M- ___________ N- _____________ (PhilCPA)
4) After operating for five years, the books of the partnership of S and T showed the following balances;
Net Assets 169,000
S, Capital 110,500
T, Capittal 58,500

If liquidation takes place at this point and the net assets are realized at book value, how much will each of the
partners received? S- ____________ T- ____________ (PhilCPA)

5) Sharon, Dennis, Rosa and Peter are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21, respectively.
The balances of their capital accounts at December 31, 2020 are as follows;
Sharon 1,000
Dennis 25,000
Rosa 25,000
peter 9,000
60,000
The partners decided to liquidate, and they accordingly converted the non cash assets into P23,200 cash. After
paying the liabilities amounting to P3,000, they have P22,200 to divide. Assume that a debit balance in any partner's
capital is uncollectible. After the P22,200 was divided, the capital balance of Dennis is ___________. (PhilCPA)

6) A balance sheet of the partnership of KK, LL and MM, who share profits 2:1:1, respectively, shows the following
balances before liquidation.
Cash Other assets Liabilities KK, Capital LL, Capital MM, Capital
48,000 238,000 80,000 88,000 62,000 56,000

In the first month of liquidation, P128,000 was received on the sale of certain assets. Liquidation expenses of P4,000
were paid, and additional liquidation expenses of P3,200 are anticipated before liquidation is completed. Creditors
were paid P22,400. The available cash was distributed to the partners. The cash to be received by each partner
based on the above data would be: KK- ________
LL- ________
MM-_______

7) NN, OO, PP and GG, partners to a law firm, share profits and losses at the ratio of 5:3:1:1. On June 30, some accounts
are shown below: Advances (DR) Loans (CR) Capital (CR)
NN 0 20,000 160,000
OO 0 40,000 120,000
PP 18,000 0 60,000
GG 10,000 0 100,000

On this day, cash of P72,000 is declared as available for distribution to partners as profits.Who among the partners will
benefit fron the P72,000 cash distribution and how much?

8) After all partnership assets were converted into cash, and all available cash was distributed to creditors, the ledger of
the Daniel, Erik and Fred partnership capital showed the following:
Debit Credit
Accounts Payable 20,000
Daniel, Capital (40%) 10,000
Erik, Capital (30%) 60,000
 Fred, Capital (30%) 90,000

Percentages indicated are residual profit and losses sharing ratio. Personal assets and liabilities of the partners are as
follows: Daniel Erik Fred
Personal assets 50,000 50,000 100,000
Personal liailities 45,000 40,000 40,000

The partnership creditors proceeded against Fred for recovery of their claims, and the partners settle their claims against
each other. How much would Erik receive? ____________________

9) The PQR Partnership is being dissolved. All liabiities have been paid and the remaining assets are being realized gradually.
The equity of the partners are shown below: Partners' Loans to (from) P & L Ratio
Accounts partnership
P 24,000 6,000 3
Q 36,000 0 3
R 60,000 ( 10,000 ) 4

The second cash payment to any partner (s) under a program of priorities shall be made thus:
a) to R, P72,000 b) to Q, P6,000 c) to R,P8,000 d) To Q, P6,000 & to R, P8,000 (PhilCPA)

10) A cash distribution plan (payment priority program) for the Matt, Nora and Ronnie partnership appears below:
Priority Creditors Matt Nora Ronnie
First P300,000 100%
Next P80,000 70% 30%
Next P70,000 3/7 4/7
Remainder 22% 34% 44%
If P550,000 of cash is o be distributed, how much will be received by the pirority creditors, Matt, Nora and Ronnie/
Priority creditors- ______
Matt- ________________
Nora- ________________
Ronnie_______________
adually.