Question

1. On July 20,2015 , Chloe, Lucifer and Amenadiel from a partnership investing cash of 105,000; 94,500 and 29,400, respectively. The partners share profits 3:2:2 and on October 30, 2015, they have cash of 7,000; other assets of 322,500; and liabilities of 179,200. On this date , they decided to go out of business and sell all the assets for 210,000. Amenadiel has personal assets of 10,500 that may , if necessary, be used to meet partnership obligations. What is the amount received by partner Lucifer at the end of liquidation?

2. On January 1, 2020, ABC Company sold for 17,500 a heavy appliance which had a cost of 11,375. The company received a down payment of 1,875 with the provision that additional payments of 1,562.50 be made monthly thereafter. Interest was to be charged at a monthly rate of 2% on the unpaid balance of the principal. After completing four months of installment, the customer defaulted, and the heavy appliance was repossessed. At this time, the net realizable of the heavy appliance (used) was computed at 4,687.50. Compute the loss on repossession.

3. Los Angeles Co. has forced into bankruptcy and liquidated. Unsecured claims will be paid at the rate of 0.50 on the peso. Las Vegas Co. holds a non-interest- bearing note receivable from Los Angeles Co. in the amount of 50,000, collateralized by machinery with a liquidation value of 10,000,000. The total amount to be realized by Las Vegas Co. on this note receivable is?

Answer 1

Loss on Repossession- $973.21

realized amount on note receivable= (50,000*0.50)= 25,000

After downpayment 9500 11375 1875 Opening bal installment Interest 9500 1562.5 8096.25 1562.5 6664.425 1562.5 5203.9635 1562.5 3714.29277 158.75 130.675 102.0385 72.82927 NRV Value on repossession Loss 4687.5 3714.29277 973.21