Solution manual advanced accounting by baysa lupisan chapter 031

2Neri, Ordan and PaciaStatement of LiquidationJanuary 1 - March 31, 2008##Other##Pacia,#Sal.

50,000#P470,000#(P140,000)#P30,000##Sale of other assets & distribution of loss#200,000#( 300,000)###( 60,000)#( 20,000)#( 20,000)

##Balances#P280,000#P660,000#P630,000#P

50,000#P410,000#(P160,000)#P10,000##Payment of

liabilities#( 280,000)##( 280,000)######Balances# -#P660,000#P350,000#P 50,000#P410,000#(P160,000)#P10,000##Offset of loan####( 50,000)##

50,000###Additional investment by Velasco# 90,000#####

liabilities#(350,000)##( 350,000)######Balances#P280,000#P 60,000 # -# #P282,000# P 14,000#P44,000##Possible loss on remaining other assets##( 60,000)###( 36,000)#( 12,000) #( 12,000)##Cash distribution to partners#P280,000# -# -# #P246,000#P 2,000#P32,000##

PROBLEMSProblem 3-1

Erica and EdnaStatement of LiquidationJanuary 1 31, 2008##Non-cash##C A P I�

T A L###Cash#Assets#Liabilities#Elma#Erica#Edna##Profit and loss ratio#### 3/8# 3/8# 2/8##Balances before liquidation#P 80,000#P810,000#P270,000# P60,000#P290,000#P270,000##Sale of non-cash assets and distribution of loss# 634,000#(810,000)## (66,000)#( 66,000)#( 44,000)##Payment of liquidation expenses#( 24,000)### ( 9,000)#( 9,000)#( 6,000)##Balances#P690,000#

Elma , Erica and Edna Statement of LiquidationJanuary 1 �

31, 2008##Non-cash#Note Payable##C A P I T A L###Cash#Assets#to

Elma#Liabilities#Elma#Erica#Edna##Profit and loss ratio##### 3/8# 3/8# 2/8##Balances before liquidation#P 80,000#P810,000#P70,000#P200,000#

P60,000#P290,000#P270,000##Sale of non-cash assets and distribution of loss# 634,000#(810,000)### (66,000)#( 66,000)#( 44,000)##Payment of liquidation expenses# (24,000)####

Erica and EdnaStatement of LiquidationJanuary 1 31, 2008##NR from#Non-�

cash#NP ##C A P I T A L###Cash#Erica#Assets#to Elma#Liabilities# Elma# Erica# Edna##Profit and loss ratio###### 3/8# 3/8# 2/8##Balances before liquidation#P 80,000#P110,000#P700,000#P70,000#P200,000#

P60,000#P290,000#P270,000##Sale of non-cash assets and distribution of loss# 634,000##(700,000) ### (24,750)#( 24,750)#( 16,500)##Payment of liquidationexpenses# (24,000)#####

( 9,000)#( 9,000)#( 6,000)##Balances#P690,000#P110,000#

#P70,000#P200,000# P26,250#P256,250#P247,500##Payment of liabilities#

(200,000)####(200,000)#####Balances#P490,000#P110,000# #P70,000# #

P26,250#P256,250#P247,500##Offset of receivable against credit balance in the capital of Erica##(110,000)## ## #( 110,000)###Balances#P490,000##

#P70,000# # P26,250#P146,250#P247,500##Payment to partners#(490,000)##

#( 70,000)# # ( 26,250)#( 146,250)#( 247,500)##Problem 3 2 (Case 1)Calma, Daza�and EstebanStatement of LiquidationJanuary, 2009##Other##L O A N#C

A P I T A L###Cash#Assets#Liabilities#Daza#Esteban#Calma (2/5)#Daza (2/5)#Esteban (1/5)##Balances before liquidation#P 20,000#P

340,000#P 112,000#P 5,000#P 8,000#P 95,000#P 60,000#P 80,000##Sale of assets & distribution of loss# 250,000# (340,000)#### (36,000)# (36,000)#

(18,000)##Balances#P 270,000#-#P 112,000#P 5,000#P 8,000#P 59,000#P 24,000#P 62,000##Payment of liabilities# ( 112,000)## (112,000)#######Payment of to partners#P 158,000#-#-#P 5,000#P 8,000#P 59,000#P 24,000#P 62,000##Problem 3 2�(Case 2)Calma, Daza and EstebanStatement of LiquidationJanuary, 2009##Other##L

O A N#C A P I T A

L###Cash#Assets#Liabilities#Daza#Esteban#Calma (2/5)#Daza (2/5)#Esteban

(1/5)##Balances before liquidation#P 20,000#P 340,000#P 112,000#P 5,000#P 8,000#P 95,000#P 60,000#P 80,000##Sale of assets & distribution of loss# 185,000# (340,000)#### (62,000)# (62,000) # (31,000)##Balances#P 205,000#-#P 112,000#P 5,000#P 8,000#P 33,000#P( 2,000)#P 49,000##Payment of liabilities# ( 112,000)# # (112,000)#######Balances#P 93,000#-#-#P 5,000#P 8,000#P

33,000#P( 2,000)#P 49,000##Offset of loan against debit balance in the capital account #### (2,000)### 2,000###Payment to partners#P 93,000#-#-#P 3,000#P 8,000#P 33,000#-#P 49,000##Problem 3 2 (Case 3)Calma, Daza and �

EstebanStatement of LiquidationJanuary, 2009##Other##L O A N#C A

P I T A L###Cash#Assets#Liabilities#Daza#Esteban#Calma

(2/5)#Daza (2/5)#Esteban (1/5)##Balances before liquidation#P 20,000#P

340,000#P 112,000#P 5,000#P 8,000#P 95,000#P 60,000#P 80,000##Sale of assets & distribution of loss# 170,000# (340,000)#### (68,000)# (68,000) #

(34,000)##Balances#P 190,000#-#P 112,000#P 5,000#P 8,000#P 27,000#P( 8,000)#P 46,000##Payment of liabilities# ( 112,000)# # (112,000)#######Balances#P 78,000#-#-#P 5,000#P 8,000#P 27,000#P( 8,000)#P 46,000##Offset of loan againstdebit balance in the capital account # # # # (5,000)# # # 5,000#

##Balances#P 78,000#-#-#-#P 8,000#P 27,000#P(3,000)#P 46,000##Payment to partners# ( 78,000)# ### ( 8,000)#( 25,000)# # (45,000)##Balances#-#-#-#-#-#P2,000#P(3,000)#P 1,000##Additional investment by Daza# 3,000 ###### 3,000# ##Payment to partners#P 3,000#-#-#-#-#P 2,000#-#P 1,000##Problem 3- 2 (Case 4)Calma, Daza and EstebanStatement of LiquidationJanuary, 2009

##Other##L O A N#C A P I T A

L###Cash#Assets#Liabilities#Daza#Esteban#Calma (2/5)#Daza (2/5)#Esteban

(1/5)##Balances before liquidation#P 20,000#P 340,000#P 112,000#P 5,000#P 8,000#P 95,000#P 60,000#P 80,000##Sale of assets & distribution of loss# 125,000# (340,000)#### (86,000)# (86,000) # (43,000)##Balances#P 145,000#-#P 112,000#P 5,000#P 8,000#P 9,000#P(26,000)#P 37,000##Payment of liabilities# (112,000)# # (112,000)# ######Balances#P 33,000#-#-#P 5,000#P 8,000#P

9,000#P(26,000)#P 37,000##Offset of loan against debit balance in the capital account #### (5,000)### 5,000# ##Balances#P 33,000#-#-#-#P 8,000#P 9,000#P(21,000)#P 37,000##Payment to partners# ( 33,000)#### ( 8,000)### (25,000)##Balances#-#-#-#-#-#P 9,000#P(21,000)#P 12,000##Additional

investment by Daza# 21,000 ###### 21,000# ##Payment to partners#P

21,000#-#-#-#-#P 9,000#-#P 12,000##

Problem 3 2 (Case 5)Calma, Daza and EstebanStatement of LiquidationJanuary, �2009##Other##L O A N#C A P I T A

L###Cash#Assets#Liabilities#Daza#Esteban#Calma (2/5)#Daza (2/5)#Esteban

(1/5)##Balances before liquidation#P 20,000#P 340,000#P 112,000#P 5,000#P 8,000#P 95,000#P 60,000#P 80,000##Sale of assets & distribution of loss# 90,000# (340,000)####(100,000)#(100,000)# (50,000)##Balances#P 110,000#-#P 112,000#P 5,000#P 8,000#P( 5,000)#P(40,000)#P 30,000##Payment of liabilities# ( 110,000)## (110,000)#######Balances#-#-#P 2,000#P 5,000#P

8,000#P( 5,000)#P(40,000)#P 30,000##Offset of loan against debit balance in the capital account #### (5,000)### 5,000###Balances#-#-#P 2,000#-

#P 8,000#P( 5,000)#P(35,000)#P 30,000##Additional investment by Calma and Daza# 40,000 ##### 5,000# 35,000###Payment of liabilities, loan and capital#P 40,000#-#P 2,000#-#P 8,000#-#-#P 30,000##Problem 3-4

1.#Estrella, Capital#P 144,000##3.#a.#Cash#463,000####Estrella, Drawing# ( 12,000)####Eugenio, Capital#52,500####Total interest of Estrella#P 132,000

####Esteban, Capital#31,500####Cash received by Estrella#

111,000####Estrella, Capital#21,000####Share of Estrella in the loss on

liquidation#P 21,000 #### Other Assets##568,000###Fractional share of Estrella# ( 2/10#########Total loss on liquidation#P

( 31,500)#( 21,000)##Balances#P 533,000# #P 200,000#P 40,000#P 79,500#P 102,500 #P 111,000##Payment of liabilities# (200,000)# #

( 200,000)######Balances#P 333,000# # #P 40,000#P 79,500#P 102,500#P

111,000##Payment to partners# ( 333,000)# # # ( 40,000)# ( 79,500)#

(102,500)#( 111,000)##Problem 3 - 6QRS PartnershipStatement of LiquidationJuly

to September, 2008###Accounts#Roman,#C A P I T A L###Cash#Other Assets#Payable#Loan#Quizon#Roman#Silva##Balances before liquidation#P

( 67,500)#####Balances#P 30,000#P 480,000#-# P 82,500# P116,250# P159,750# P151,500##August: Sale of assets# 66,000#( 105,000)### ( 19,500)# ( 11,700)# ( 7,800)## Payment of

liquidation expenses#( 7,500) #### ( 3,750)# ( 2,250)# ( 1,500)###P 88,500#P 375,000#-# P 82,500# P 93,000# P145,800# P142,200## Payment of loan and capital#( 58,500)###

( 41,100)### ( 17,400)##Balances#P 30,000#P 375,000#-# P 41,400#

P 93,000# P145,800# P124,800##Sept.: Sale of assets# 165,000#( 375,000) ### ( 105,000)# ( 63,000)# ( 42,000)## Payment

of liquidation expenses#( 7,500)#### ( 3,750)# ( 2,250)# ( 1,500)###P 187,500#-#-#P 41,400 # (P 15,750)# P 80,550# P 81,300## Additional loss to Roman & Silva##### 15,750# ( 9,450) # ( 6,300)##Payment to partners#P 187,500#-#-#P 41,400#-# P 71,100 # P 75,000 ##

Problem 3 - 5JKLM Trading Statement of LiquidationFebruary 1 - March 31, 2008

##Other ##Jocson# C A# P I# T A#

L###Cash#Assets#Liabilities#Loan#Jocson#Kaimo#Legarda#Manabat##Balances before liquidation#P 100,320#P 193,530#P 21,360#P 15,000#P 24,120#P 96,480#P 109,020#P27,870##February:########## Sale of assets & distribution of loss# 49,320# ( 66,060)### ( 3,348)# ( 5,022)# ( 5,022)# ( 3,348)##

Payment of liabilities# ( 17,750)## ( 17,750)####### Payment of

liquidation expenses# ( 8,220)#### ( 1,644)# ( 2,466) # ( 2,466) # ( 1,644)## Balances#P 123,670#P 127,470#P 3,610#P 15,000#P 19,128#P 88,992#P 101,532#P 22,878## Payment to partners (sch 1)# ( 120,060)### ( 7,980)# # (49,770)# ( 62,310)# ##Balances#P 3,610#P 127,470#P

3,610#P 7,020#P 19,128#P 39,222#P 39,222#P 22,878##March:########## Sale

of assets & distribution of gain# 48,330# ( 44,850) ### 696# 1,044# 1,044# 696 ## Payment of liabilities# ( 3,610) ## ( 3,610)####### Payment of liquidation expenses# ( 7,380)#### ( 1,476)# ( 2,214)# ( 2,214)# ( 1,476)## Balances#P 40,950#P 82,620#p

-#P 7,020#P 18,348#P 38,052#P 38,052#P 22,098## Payment to partners (sch 2)# ( 40,950)### 7,020# ( 1,824)# (13,266) # ( 13,266)#( 5,574)##Balances, March 31#P -#P 82,620#P -#P -#P 16,524#P 24,786#P 24,786#P 16,524##Problem 3 - 8Req 2Neri, Ordan and PaciaStatement of LiquidationJanuary 1 - March 31, 2008##Other##Pacia,#Sal Pay.#C

A P I T A L ###Cash#Assets#Liabilities#Loan#to Neri

#Neri#Ordan#Pacia##Balances before liquidation#P 19,000#P 191,000#P 77,000#P 9,000#P 6,000#P 50,000#P 28,000#P 40,000##January:########## Collectionsfrom customers # 112,000#(112,000)######## Payment of liquidation expenses# ( 4,400)##### ( 2,200)# ( 1,100) # ( 1,100)## Payment of liabilities# ( 38,000)## ( 38,000)####### Balances#P 88,600#P 79,000#P 39,000#P 9,000#P 6,000#P 47,800#P 26,900#P 38,900## Payment to partners(see schedule) # ( 16,000) ### ( 9,000)#### ( 7,000)##Balances#P 72,600#P 79,000#P 39,000#-#P 6,000#P 47,800#P 26,900#P 31,900##February:########## Collections from customers# 36,000# ( 36,000)######## Payment of

liquidation expenses# ( 2,800)##### ( 1,400)# ( 700)# ( 700)## Payment of liabilities & dist of gain # (38,000)## ( 39,000)### 500# 250# 250## Balances#P 67,800#P 43,000#-#-#P 6,000#P 46,900#P 26,450#P 31,450## Payment to partners (see schedule)# ( 19,800)#### ( 6,000)# ( 1,400)# ( 3,700)# ( 8,700)##Balances#P 48,000 #P 43,000#-

#-#-#P 45,500#P 22,750#P 22,750##March:########## Collections from

customers & dist of loss# 35,000# ( 43,000)#### ( 4,000) # ( 2,000)# ( 2,000)## Payment of liquidation expenses# ( 4,000)##### ( 2,000)# ( 1,000)# ( 1,000)##Payment to partners#P( 79,000) #-#-#-#-#P 39,500 #P 19,750#P 19,750##Problem 3 -8Requirement No 1 Neri, Ordan and PaciaCash Priority ProgramJanuary 1, 2008

#####Neri#Ordan#Pacia#Neri#Ordan#Pacia##Capital balances before liquidation

#P 50,000#P 28,000#P 40,000#####Add Loan balances# 6,000# # 9,000

#####Total partners interest#P 56,000#P 28,000#P 49,000#####Profit and loss �ratio# ( 50%# ( 25%# ( 25%#####Loss absorption

balance#P112,000#P112,000#P196,000#####allocation I - Cash to Pacia reducing LAB to an amount reported######## for Neri and Ordan Reduction of P84,000 requires payment######## of 25% of P 84,000# # #( 84,000)

# _# _ #P 21,000##Balances#P112,000#P112,000# P112,000# -# -#P 21,000##Allocation II - Further cash distributions may be made in the profit and loss raio SCHEDULE OF CASH DISTRIBUTION:

##Amount#Neri#Ordan#Pacia########January:#Cash available#P

16,000############Allocation I: ############# Payable to Pacia# 16,000

#-# -#P 16,000#####################February:#Cash available#P

19,800############Allocation I:############# Payable to Pacia#

5,000###P 5,000#########Allocation II############# Payable

according############# to P & L ratio#P 14,800#P 7,400#P 3,700# 3,700##########-#P 7,400#P 3,700#P 8,700########Problem 3 - 7Requirement 3Tabora, Ureta and VelosoStatement of LiquidationJanuary 1 to April 30, 2008 Other L O A N C A

P I T A

L###Cash#Assets#Tabora#Ureta#Veloso#Tabora#Ureta#Veloso##Balances before

liquidation#-#P 338,000#P 45,000#P 30,000#P 13,000#P 120,000#P 90,000#P

40,000##January:########## Sale of assets# 15,000# ( 15,000)######## Payment to partners# (15,000) # # # (15,000)# # # # ##Balances #-#P 323,000#P45,000#P15,000#P 13,000#P 120,000#P 90,000#P 40,000##February:########## Sale of assets # 40,000 # ( 40,000) ######## Payment to partners# ( 40,000)# # ( 21,250)# (15,000)# # # ( 3,750)# ##Balances# #P 283,000#P 23,750#-#P 13,000#P 120,000#P 86,250#P 40,000##March:########## Sale of assets# 90,000# ( 90,000)######## Payment to partners# ( 90,000)# # (23,750)# # (13,000)# ( 23,500)# ( 28,350)# ( 1,400)##Balances#-#P 193,000#-

#-#-#P 96,500#P 57,900#P 38,600##April:########## Sale of assets &

distribution of loss# 30,000# ( 193,000)#### ( 81,500)# ( 48,900)#

(32,600)##Balances#P 30,000#-#-#-#-#P 15,000#P 9,000#P 6,000##Payment to partners# (30,000)#-#-#-#-#P 15,000#P 9,000#P 6,000##

####Chapter 3 Partnership LiquidationSuggested Answers �

page AA1 -Chapter 3 (2008 edition))s

page # PAGE #1#Chapter 3 Partnership LiquidationSuggested Answers �

page Chapter 3 Partnership LiquidationSuggested Answers �

page Chapter 3 Partnership LiquidationSuggested Answers �

page Chapter 3 Partnership LiquidationSuggested Answers � page

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