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    Accounting 3 4 Module 5b

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    Mariel Ann Rebancos
    This document contains 4 exercises involving the liquidation of partnerships. Exercise 1 involves the retirement of partner B from the ABC partnership under various scenarios for the sale of B's interest. Exercise 2 involves calculating the share of profits due to the estate of partner F who died during the year. Exercise 3 requires preparing a statement of partnership liquidation and journal entries for the liquidation of the GHI partnership. Exercise 4 requires preparing a statement of partnership liquidation, schedule of cash distributions, and journal entries for the liquidation of the JKLM partnership.

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    Accounting 3 4 Module 5b

    Uploaded by

    Mariel Ann Rebancos
    72 views2 pages
    This document contains 4 exercises involving the liquidation of partnerships. Exercise 1 involves the retirement of partner B from the ABC partnership under various scenarios for the sale of B's interest. Exercise 2 involves calculating the share of profits due to the estate of partner F who died during the year. Exercise 3 requires preparing a statement of partnership liquidation and journal entries for the liquidation of the GHI partnership. Exercise 4 requires preparing a statement of partnership liquidation, schedule of cash distributions, and journal entries for the liquidation of the JKLM partnership.

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    Accounting-3-4-Module-5b

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    This document contains 4 exercises involving the liquidation of partnerships. Exercise 1 involves the retirement of partner B from the ABC partnership under various scenarios for the sale of B's interest. Exercise 2 involves calculating the share of profits due to the estate of partner F who died during the year. Exercise 3 requires preparing a statement of partnership liquidation and journal entries for the liquidation of the GHI partnership. Exercise 4 requires preparing a statement of partnership liquidation, schedule of cash distributions, and journal entries for the liquidation of the JKLM partnership.

    Copyright:

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

    Accounting 3 4 Module 5b

    Uploaded by

    Mariel Ann Rebancos
    This document contains 4 exercises involving the liquidation of partnerships. Exercise 1 involves the retirement of partner B from the ABC partnership under various scenarios for the sale of B's interest. Exercise 2 involves calculating the share of profits due to the estate of partner F who died during the year. Exercise 3 requires preparing a statement of partnership liquidation and journal entries for the liquidation of the GHI partnership. Exercise 4 requires preparing a statement of partnership liquidation, schedule of cash distributions, and journal entries for the liquidation of the JKLM partnership.

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    Exercises:

    1. A, B and C are partners sharing profits and losses in the ratio of their capital contributions. The
    capital balances of the partners are Php60,000; Php120,000; and Php120,000, respectively. B,
    with the consent of A and C, withdraws from the firm by selling her whole interest.

    Required: Record the retirement of B under each of the following cases:

    a. Her interest is sold to A for Php128,000.


    b. Her interest is sold to C for Php136,000.
    c. Her interest is sold to the partnership for:
    (1) Php120,000
    (2) Php132,000
    (3) Php112,000

    2. D, E, and F with capital balances of Php400,000; Php400,000; and Php200,000 are partners
    sharing profits and losses in the ratio of 4:4:2, respectively. On July 31, 200A, F dies. The
    partnership does not cease operations until the end of the calendar year, and on December 31,
    200A, the profit earned amounted to Php500,000. How much is the share of F’s estate in the
    profits? Give the necessary journal, entries to determine the amount payable to F’s estate,
    assuming that before her death, F drawing amounted to Php10,000.

    3. G, H, and I liquidate the GHI Partnership. On September 30, 200A, just before the liquidation, a
    trial balance appears as follows:

    GHI PARTNERSHIP
    Trial Balance
    September 30, 200A

    Cash Php60,300
    Accounts Receivable 44,100
    Allowance for Doubtful Accounts Php2,208
    Merchandise Inventory 79,440
    Equipment 217,200
    Accumulated Depreciation – Equip. 21,720
    Accounts Payable 49,800
    Wages Payable 21,000
    G, capital 121,512
    G, drawing 7,200
    H, capital 108,000
    I, capital 84,000
    Php408,240 Php408,240

    The income sharing ratio of the partners is 3:3:2.

    Page 1 of 2
    Non-cash assets were realized in the following order: accounts receivable, Php30,000;
    merchandise inventory, Php612,800; equipment, Php180,000.

    All liabilities were paid in full and the available cash were distributed to the partners.

    Required: Statement of Partnership Liquidation and necessary journal entries.

    4. J, K, L, and M share profits in the ratio of 2:2:3:3, respectively. On October 15, 200A, they
    decided to liquidate their business. Before liquidation, the statement of financial position of the
    partnership is given below:

    JKLM PARTNERSHIP
    Statement of Financial Position
    As of October 15, 200A

    ASSETS LIABILITIES AND CAPITAL

    Cash Php 30,000 Liabilities Php150,000


    Non-cash Assets 405,000 J, loan 25,000
    J, capital 90,000
    K, capital 70,000
    L, capital 50,000
    M, capital 50,000
    Php435,000 Php435,000

    On October 20, 200A, non-cash assets worth Php255,000 were sold for Php205,000. Liquidation
    expenses of Php5,000 were paid. Liabilities were paid and available cash except Php10,000 was
    distributed to the partners.

    During the following month, the remaining assets were sold for Php130,000. The available cash
    was distributed to the partners.

    Required: (1) Statement of Partnership Liquidation


    (2) Schedule of Cash Distribution
    (3) Necessary journal entries

    Page 2 of 2

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