No.

51- Continued Additional information:

Operating income for the year ended December 31, 2013,1'176,000. Herm contributed additional capital
on July 1, P30,0(X) and made a drawing on made October I, P10,000, Mar contributed additional capital
on August 1, P20,000 and November 1 a drawing on October 1, P10,000, and Ama made a drawing Of
P30,0q) on The partners' capital balances on December 31, 2013 are: a. b. c. d.
Herm, P179,680; Mar, P229,360; Ansa, P239,360 Herm, P179,760; Mar, P229,520; Ama, P239,520 Herm,
P189,680; Mar, P239,360; Ama, P269,360 Herm, P223,180; Mar, P272,060; Ama, P280,760 52. The
partnership of Gary, Jerome, and Paul was formed on January 1, 2013. The original investments were as
follows: Gary Jerome P80,000 Paul P120,000 P180,000 According to the partnership agreement, net
income or loss will be divided among the respective partners as follows: Salaries of P 12,000 for Gary, P
10,000 for Jerome, and P8,000 for Paul. Interest of 8% on the average capital balance during the year of
Gary Jerome, and Paul' Remainder divided equally. Additional information is as follows: Net income of
the partnership for the year ended December 31, 2013 was P70,000. Gary invested an additional
P20,000 in the partnership on July 1, 2013. Paul withdrew P30,000 from the partnership on October 1,
2013. Gary, Jerome and Paul made regular drawings against their shares of net income during 2013 of P
10,000 each.
The partner's capital balances as of December 31, 2013 are:
Gary a. P112,333 b. 102,333 e. 92,000 d. 122,333

Jerome
P132,733 122,733 102,000 132,733
Paul P164,934 154,934 134,934 164,934

Partnership 47
86. L, M, N and 0 partners to a law firm prior share profits 5:3:1:1 respectively. Partners accounts por to
liquidation were as follows:
Advances (Dr)
Loans (Cr) Capitals (Cr) P5,000 P40,000 N P4 500 10,000 30,000 , 0 2,500 15,00025,000 At this point,
cash of P 18,000 is available for distribution to the partners. How much of the P 18,000 cash should be
distributed to each partner?
L a. P -O-b. P -0- c. P -0- d. P9,000
M P18,000 P -0-P 6,625 P 5,400
N 0 P -0- P -0-P -0- P18,000 P -0- P11,375 P1,800 P 1,600
$7. The statement of financial position of the Watch Partnership on October 10, 20(3 when it decided to
liquidate was as follows:
Cash P 40,000 Liabilities P 60,000 Other assets 125,000 Rolex capital (50%) 45,000 Swatch capital (30%)
42,000 Timex capital (20%) 18,000
Total P165,000 Total P165,000
Assume the other assets with a book value of P90,000 are sold for P50,000 and that all available cash,
except for a P 10,000 contingency fund, is distributed imme-diately. In this case: a. Rolex should receive
nothing b. Swatch should receive P10,000 c. Timex should receive P1,000 d. The cash should be
distributed in the profit and loss ratio 88. Kay and Loy, partners who share profits and losses equally
decided to liquidate their partnership business in installment. The statement of financial position
showed Cash, P35,000• Liabilities, P20,000; Kay capital, P71,000; and Loy capital, P54,000. Anticipated
liquidation expenses amounts to P10,000.
48 Practical Accounting - 2
No. 88 — Continued How much cash can be distributed safely to each partner at this point?
Kay Loy a. P5,000 P -0-b. P5,000 P 500 c. P3,000 P -0-d. P5,000 P1,000
89. The statement of financial position of QRST Partnership just prior to liquidation shows:
Assets P90,000
Liabilities 15,000 Q, loan 5,000 Q, capital 20,000 R, capital 20,000 S, capital 20,000 T, capital 10,000 Total
P90,000
Q, R, S, and T share profits and losses in the ratio of 2:1:1, respectively. Certain assets were sold for
P45,000. Creditors were paid in full amount owed and cash of P20,000 were distributed to the partners.
How would the P20,000 cash be distributed to the partners?
Q R S T a. P2,500 P 8,750 P 8,750 p-0-b. P -0- P20,000 P -0- P-0- c. P -0- P10,000 P10,000 P_0-d. P 5,000 P
5,000 P10,000 P-0-
90. On November 30, 2013 Bee, Cce, and Dee decided to liquidate BCD Partnership. Their capital
balances and profit and loss on this date are as follows:
Bee, capital Cee, capital Dee, capital
P50,000 (40%) 60,000 (30%) 20,000 (30%)

Partnership 49
bra 90— Continued The net income from January 1 to November 30, 2013 is P44,000. On November 30,
2013! cash and liabilities are P40,000 and P90,000, respectively. For Bee to receive P55,200 in full
settlement of his interest in the firm, how much must be realized from the sale of the firm's non-cash
assets? a. P233,000 b. P255,000 c. P149,000 11. P193,000
91. On July 1, 2013, the Chess Partnership has the following statement of financial position:
Assets Liabilities and Capital Cash P 20,400 Accounts payable P122,400 Other assets 219,600 Rook, loan
14,400 Rook, capital (50%) 28,800 King, capital (50%) 74,400 P240,000 Total P240,000
Total
As of July 1, 2013, the partners have personal net worth as follows:
Rook King
Assets Liabilities
P62,400 56,400
P 91,200 122,400
The personal net worth of each partner does not include any amounts due to or from the partnership.
Assume the other assets are sold for P 123,600 after incurring liquidation expenses of P4,800. How much
should King receive?
a. P -0-b. P22,800 c. P24,000 d. P16,800

50 Practical Accounting - 2
ses 92. Jay, Kay, and Ell are partners in JKE Partnership and share profits and los 5:3:2, respectively. The
partners have agreed to liquidate the partnership. prior to liquidation, the partnership statement of
financial position shows the followings values:
Cash Non-cash assets Notes payable to Ell Other liabilities Jay, capital Kay, capital Ell, capital
P25,200 297,600 38,400 184,800 72,000 (12,000) 39,600
Liquidation expenses of P16,800 are paid. Non-cash assets with a book value of P240,000 are sold for
P216,000.
How much cash should Ell receive?
a. P74,571 b. P46,458 c. P39,580 d. P37,600
93. Bel, Col, and Del, partners of the BCD partnership, shared profits and losses in the ratio of 5:3:2,
respectively. On December 31, 2013, the end of an unprofitable year, they decided to liquidate the
partnership. The partners' capital account balances on the date were as follows:
Bel, capital Col, capital Del, capital
P22,000 24,900 15,000
The liabilities of the partnership amounted to P30,000 including a loan of P10,00° .payable to Bel. The
cash balance was 16,000. The partners planned to realize the non-cash cash assets in installment and to
distribute cash as it becomes available. All three partners are solvent.
If Bel received a total of P20,000 as a result of liquidation, what was the amount realized by the
partnership on the non-cash assets? a. P85,900 b. P91,900 c. P67,900 d. P61,900
Total

85.
86.
C j1 ial I, es befote realization Loss on Lea lization, P30.0()0, 5:3:2 Liquidation expenses, P2,000, 5:3:2
Capital balance before cash distribution Loan balances Total Interest Possible loss, P90,000, 5:3:2
Balances Additional loss to Santos & Herva's, 3:2 Payment to partners
Partrogf,hip 81
Jacob San to Ilervas P40,0(X) l'72,000 1170,W) ( 15,0(X)) ( 9,00(i) ( (if/h) ( 1,020) ( 600) ( 400)
24,000 62,400 63,600 8,000 32,000 62,400 63,600 ( 45,000) ( 27,000) ( 18,000)
( 13,000) 35,400 45,6(X) 13,000 ( 7,800) ( 5,200)
P27,600 P40,400
DEF
Capital balances befoie realization P37,000 P65,000 P48,000 Loss on realization. P40,000, 4:4:2 ( 16,000)
( 16,000) ( _8,000) Balances 21,000 49,000 40,000 Possible loss: Other assets (P 1 80,000 - 90,000)
P90,000 Cash withheld: (P20,000 + 50,000 - 50,000 - 17,000) 3,000 P93,000 ( 37,200) ( 37,200) ( 18,600
(P16,200) P11,800 P21,400 16,200 ( 10,800) (5,400) P P 1,000 P16,000
Total
Balances Additional loss to E & f, 4:2 Payment to partners
Capital balances Loan balances Advances
Total Interest Possible loss (P118,000 - P1 8,000) Balances Additional loss to MN0, 3:1:1 Balances
Additional loss to M and 0, 3:1 Payment to M and 0
L P40,000 5,000
p45,000 ( 50,000) ( 5,000) 5,000
P
M P30,000 10,000
P40,000 ( 30,000) 10,000 F 7,000 ( 37 5) P6,625
N 0 P15,000 P25,000
( 4,500) P10,500 ( 10,000) 500 ( 1,000) ( 500) 500
L2-_500) P22,500 ( 10,000 12,500 ( 1,000) 11,500 ( 125) P11,375

s2 Acciourtni - 2

88.
89.
Capital halances Lamson real on, P40,000 Balances before cash distribution Pass :ble Ion (P35,000 +
10,000) Payment to Partners
Rolex Swateh P45,00 P42900 (20,000) ( 1 2,000) 25,000 30,000 (22300) ( 13,500) P2.500 P16.500
Cap balances before cash distribution Possible loss, t(P20,000 125,00))-P35,000] P110,000 + 10,0Ck =
P120,000 ( 60,000) Balances P11,000 Additional loss to Kay ( 6,009) Payment to partner Kay P 5,000
Kay nipoo
Capital balances Loan balances
Q P20,000 5,000
R S F2C.,,002) P20PO4
Totalterest 25,000 20,003 20,000 Posalie less (P75,000 - P20,000) ( 22,000) (11.0170) ( 11,003)
Balances
3,000 9,000 9,000 Additional loss to QRS, 2:1:1 ( 500) ( 250) ( 250)
Payment to partners P 2,500 P 8,-56 P 8,-50
9 0. Bee capital before profit distribution P 50,000 Profit share (P44,000 x 40%) 17,600 Total interest
67,600 Cash settlement ( 55,2(X))
Loss share P 12,400 ir. Total loss on realization (P12,400 / 40%) Non-cash assets [(P17,400 + 90,000) -
P40,000] Cash to be realized
P 31,000 ( 224,000) P193,000
Timex PI LOCO 10,000 ( 9,000) P 1,000
Loy P54,000
( 60,000) P(6,000) 6,000 P
T P10,000 10,CCO ( 11,000) ( 1,000) ( 1,000) P -0-

91•
92.

Parttiorthip 83
Capital balances '2 ■',,Vii kook Loan balances K anK 14,400 P74,41/) _ Total interest 2( ,X) ...._.
Liquidation expenses, P4,800 43 74400 Loss on realization (P219,600 - P123,600) ( 2,400) ( 2,4th)
Balances ( 48,000) ( 48,0(A) Additional investment by Rook( P62,400-56,400) ( 7,200) 24,000 6 000 -
Balances 2000 Additional loss to King ( 1,200) 4, 1 ,200 ( 1,200) Payment to King P -0 - P22,800
Capital balances Notes payable to Ell Total interest Liquidation expenses, P16,800 Loss on realization,
P24,000
Jay Kay Ell P72,000 P(12,000) P39,600 38,400 P72,000 P(12,000) P78,000 ( 8,400) ( 5,040) ( 3,360)
( 12,000) ( 7,200) ( 4,800)
Total interest before cash distribution P51,600 P(24,240) P69,840 Possible loss (P297,600 - P240,000)
P57,600 ( 28,800) ( 17,280) ( 11,580) P22,800 P(41,520) P58,260 Additional loss to Jay and Ell, 5:2
( 29,657) 41,520 ( 11,863) P(6,857) P -0- P46,397 Additional loss to Ell 6,857 ( 6,857) Payment to Ell P -0-
P -0- P39,580
Balances
Balances
93.4 Bel, capital Bel, loan
P22,000 10,000 P32,000 Total interest before cash distribution20,000 Cash received P12 000 Loss share
(50%) P24,000
Loss on realization (P12,000 / 50%) Non-cash assets: Total capital Total liabilities Total assets Cash Cash
realized
P61,900 30,000 P91,900 6,000 85,900 P61,900