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    Bsa 3101 - Accounting For Special Transactions Seatwork No. 2 Instructions

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    Zihr Elleryc
    The document provides instructions for a seatwork assignment with 4 multiple part accounting problems related to liquidating partnerships. The problems involve calculating cash distributions to partners based on capital account balances, loan amounts, profit/loss sharing ratios, and cash available from assets after paying liabilities. Students are asked to show their work and submit their answers via email.

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    Bsa 3101 - Accounting For Special Transactions Seatwork No. 2 Instructions

    Uploaded by

    Zihr Elleryc
    48 views2 pages
    The document provides instructions for a seatwork assignment with 4 multiple part accounting problems related to liquidating partnerships. The problems involve calculating cash distributions to partners based on capital account balances, loan amounts, profit/loss sharing ratios, and cash available from assets after paying liabilities. Students are asked to show their work and submit their answers via email.

    Original Title

    Prelim-Seatwork-No.-2

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    The document provides instructions for a seatwork assignment with 4 multiple part accounting problems related to liquidating partnerships. The problems involve calculating cash distributions to partners based on capital account balances, loan amounts, profit/loss sharing ratios, and cash available from assets after paying liabilities. Students are asked to show their work and submit their answers via email.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views2 pages

    Bsa 3101 - Accounting For Special Transactions Seatwork No. 2 Instructions

    Uploaded by

    Zihr Elleryc
    The document provides instructions for a seatwork assignment with 4 multiple part accounting problems related to liquidating partnerships. The problems involve calculating cash distributions to partners based on capital account balances, loan amounts, profit/loss sharing ratios, and cash available from assets after paying liabilities. Students are asked to show their work and submit their answers via email.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    BSA 3101 – ACCOUNTING FOR SPECIAL TRANSACTIONS

    Seatwork No. 2

    Instructions:

    Read the problems carefully and submit your answers using PDF. Use this format for the file name
    (Last name_Section_SW2). Also, please attach the picture of your solutions. Kindly send your answers
    to my email at vincent.ramiso@ue.edu.ph.

    1. The following statement of financial position is presented for the partnership of A, B, and C, who
    share profits and losses in the ratio of 4:3:3

    Assets
    Cash P90,000
    Other assets 830,000
    A, loan 20,000
    Total Assets P940,000

    Liabilities and Capital


    Accounts payable P210,000
    C, Loan 30,000
    A, Capital 310,000
    B, Capital 200,000
    C, Capital 190,000
    Total liabilities and capital P940,000

    Assume the partners decide to liquidate the partnership. If the other assets are sold for P700,000,
    how much of the available cash should be distributed to A?

    2. The firm of JJ, KK, LL, and MM decides to liquidate. Partners share profits and losses as follows:
    JJ, 40%; KK, 35%; LL, 15%; and MM, 10%. The trial balance on October 1, 2019 the date on
    which liquidation begins, follows:
    Assets
    Cash P10,000
    Other assets 255,500
    Total Assets P265,500

    Liabilities and Capital


    Accounts payable P9,000
    JJ, loan 18,000
    KK, loan 30,000
    JJ, capital 60,000
    KK, capital 64,500
    LL, capital 54,000
    MM, capital 30,000
    Total liabilities and capital P265,500
    Cash of P38,100 is available at the end of October. How much cash is distributed to the partners?

    3. Partners Macky, Joey and Vico share profits and losses in the ratio of 5:3:2. At the end of a very
    unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this
    time are as follows:

    Macky P22,000
    Joey 24,900
    Vico 15,000

    The liabilities accumulate to P30,000, including a loan of P10,000 from Macky. The cash balance
    is P6,000. All the partners are personally solvent. The partners plan to sell the assets in
    installment.
    (Hint: Use cash priority program)

    a. If Joey received P2,000 from the first distribution of cash, how much did Macky and Vico
    receive at that time?
    b. If Macky received a total of P20,000 as a result of the liquidation, what was the total amount
    realized from the sale of the non-cash assets?
    c. If Vico received P6,200 on the first installment of cash, how much did Joey receive at that
    time?

    4. Assume that a partnership had assets with a book value of P240,000 and a market value of
    P195,000, outside liabilities of P70,000, loans payable to partner Noli of P20,000, and capital
    balances for partners Noli, Jessica, and Korina of P70,000, P30,000, and P50,000.

    a. How much would Noli receive upon liquidation of the partnership assuming profits and losses
    are allocated equally?
    b. How would the first P100,000 of available assets be distributed assuming profits and losses
    are allocated equally?
    c. If all outside creditors and loans to partners had been paid, how would the balance of the
    assets be distributed assuming that Korina had already received assets with a value of
    P30,000 and assuming profits and losses are allocated equally?

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