On December 31, 2020, the Statement of Financial Position of ABC partnership with profit or loss...
On December 31, 2020, the Statement of Financial Position of ABC partnership with profit or loss ratio of 4:1:5 is presented below: Cash 2,100,000 Liability to third person 5,600,000 Noncash asset 11,200,000 Alucard, capital 4,900,000 Baxia, capital 2,100,000 Claude, capital 700,000 On January 1, 2021, ABC partnership has been subjected to installment liquidation. As of January 31, 2021, the following data concerning liquidation are provided:
o Noncash asset with book value of P8,700,000 has been sold at a loss of P2,800,000.
o Liquidation expense amounting to P560,000 has been incurred for the month of January.
o P840,000 cash has been withheld for future liquidation expense.
o P4,200,000 liability has been paid.
10. What is C’s share in the maximum possible loss on January 31, 2021?
a. P1,050,000 b. P1,680,000 c. P1,820,000 d. P2,100,000
11. What is the amount received by B on January 31, 2021?
a. P700,000 b. P840,000 c. P1,540,000 d. P2,240,000
12. What is the cash balance on January 31, 2021?
a. P700,000 b. P840,000 c. P1,540,000 d. P2,240,000
Homework Answers
10. c) P1,820,000
11. c) P1540000
12.C) P1540000
Realisation Account
Dr. Cr.
| Particulars | Amount | Particulars | Amount |
|
To Non cash assets |
11,200,000 | By liabilites | 5,600,000 |
| To Cash account | 560,000 | By cash account | 5,900,000 |
| To Cash account | 4,200,000 | By cash account | 840,000 |
|
By capital account A's account 1,448,000 B's account 362,000 C's account 1,820,000 |
3,610,000 | ||
| 15,960,000 | 15,960,000 |
Capital Account
Dr. Cr.
| Particulars | A | B | C | Particulars | A | B | C |
| To realisation account | 1448000 | 362000 | 1820000 | By balance b/d | 4900000 | 2100000 | 700000 |
| To A's and b"s capital account | 3452000 | 1540000 | By c's capital account | 1120000 | |||
| 4900000 | 2100000 | 1820000 | 4900000 | 2100000 | 1820000 |
Cash Account
| Particulars | Amount | Particulars | Amount |
| To bal. b/d | 2100000 | By realisation account | 560000 |
| To realisation account | 5900000 | By realisation account | 4200000 |
| To realisation account | 840000 | By A's capital account | 3452000 |
| To c's capital account | 1120000 | By B's capital account | 1540000 |
| 9204000 | 9204000 | ||
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