EXERCISES

Case A 700,000

3T Partnership
Statement of Liquidation
December 31, 2019
Loan
Cash Other Assets Liabilities Tak Toe
Profit and loss ratio
Balance before liquidation 40,000 680,000 224,000 10,000 16,000
Realization and distribution of loss 700,000 (680,000)
Balances 740,000 224,000 10,000 16,000
Payment of Liabilities (224,000) (224,000)
Balances 740,000 10,000 16,000
Payment to Partners (740000) (10000) (16000)

Journal Entries
a)       Sales of other assets and distribution of loss b) Payment of Liabilities
Cash 700,000 Liabilities 224,000
Tik, Capital 8,000 Cash 224,0
Tak, Capital 8,000
Toe, Capital 4,000
Other Assets 680,000

Case B 500,000
3T Partnership
Statement of Liquidation
December 31, 2019
Loan
Cash Other Assets Liabilities Tak Toe
Profit and loss ratio
Balance before liquidation 40,000 680,000 224,000 10,000 16,000
Realization and distribution of loss 500,000 (680,000)
Balances 540,000 224,000 10,000 16,000
Payment of Liabilities (224000) (224,000)
Balances 316,000 10,000 16,000
Payment to Partners (316000) (10000) (16000)

Journal Entries
a) Sale of other assets and distribution of losses b) Payment of Liabilities c) Payment to partners
Cash 500,000 Liabilities 224,000 Tak,Loan 10,000
Tik, Capital 72,000 Cash 224,000 Toe, Loan 16,000
Tak, Capital 72,000 Tik, Capital 118,000
Toe, Capital 36,000 Tak, Capital 48,000
Other Assets 680,000 Toe, Capital 124,000
Cash
Case C 370,000
3T Partnership
Statement of Liquidation
December 31, 2019
Loan
Cash Other Assets Liabilities Tak Toe
Profit and loss ratio
Balance before liquidation 40,000 680,000 224,000 10,000 16,000
Realization and distribution of loss 370,000 (680,000)
Balances 410,000 224,000 10,000 16,000
Payment of Liabilities (224000) (224,000)
Balances 186,000 10,000 16,000
Offset Tak, Loan to Tak's capital deficiency (4,000)
Balances 186,000 6,000 16,000
Payment to Partners (186000) (6000) (16000)

Journal Entries
a) Sale of other assets and distribution of losses b) Payment of Liabilities c) Offset to capital deficien
Cash 370,000 Liabilities 224,000 Tak,Loan 4,000
Tik, Capital 124,000 Cash 224,000 Tak, Capital
Tak, Capital 124,000
Toe, Capital 62,000
Other Assets 680,000

d) Payment to partners
Tak,Loan 6,000
Toe, Loan 16,000
Tik, Capital 66,000
Toe, Capital 98,000
Cash 186,000

Case D 340,000
3T Partnership
Statement of Liquidation
December 31, 2019
Loan
Cash Other Assets Liabilities Tak Toe
Profit and loss ratio
Balance before liquidation 40,000 680,000 224,000 10,000 16,000
Realization and distribution of loss 340,000 (680,000)
Balances 380,000 224,000 10,000 16,000
Payment of Liabilities (224000) (224,000)
Balances 156,000 10,000 16,000
Offset Tak, Loan to Tak's capital deficiency (10,000)
Balances 156,000 16,000
Payment to Partners (see schedule) (156000) (16000)
Balances
Additonal investment of Tak 6000
Balances 6000
Payment to Partners (6000)

Journal Entries
a) Sale of other assets and distribution of losses b) Payment of Liabilities c) Offset to capital deficien
Cash 340,000 Liabilities 224,000 Tak,Loan 10,000
Tik, Capital 136,000 Cash 224,000 Tak, Capital
Tak, Capital 136,000
Toe, Capital 68,000
Other Assets 680,000

d) Payment to partners with accompanying schedule e) Additional investment of Tak

Toe,Loan 16,000 Cash 6,000
Tik, Capital 50,000 Tak, Capital 6,000
Toe, Capital 90,000
Cash 156,000

Case E 250,000
3T Partnership
Statement of Liquidation
December 31, 2019
Loan
Cash Other Assets Liabilities Tak Toe
Profit and loss ratio
Balance before liquidation ₱ 40,000.00 680,000 224,000 10,000 16,000
Realization and distribution of loss 250,000 (680,000)
Balances 290,000 224,000 10,000 16,000
Payment of Liabilities (224000) (224,000)
Balances 66,000 10,000 16,000
Offset Tak, Loan to Tak's capital deficiency (10,000)
Balances 66,000 16,000
Additional loss to other partners
in the ratio of 4:2 due to tak's deficiency
Balances 16,000
additional loss to toe due to tik's deficiency
Balances 66000 16,000
Payment to Partners (66,000) (16,000)

Journal Entries
a) Sale of other assets and distribution of losses b) Payment of Liabilities
Cash 250,000 Liabilities 224,000
Tik, Capital 172,000 Cash 224,000
Tak, Capital 172,000
Toe, Capital 86,000
Other Assets 680,000
d) Additonal loss to other partners
Tik,Capital 18,000
Toe, Capital 24,000
Tak,Capital 42,000

3T Partnership
Statement of Liquidation
December 31, 2019
Case F 180,000 Loan
Cash Other Assets Liabilities Tak Toe
Profit and loss ratio
Balance before liquidation ₱ 40,000.00 680,000 224,000 10,000 16,000
Realization and distribution of loss 180,000 (680,000)
Balances 220,000 224,000 10,000 16,000
Payment of Liabilities (224000) (224,000)
Balances 156,000 10,000 16,000
Offset Tak, Loan to Tak's capital deficiency (10,000)
Balances 156,000 16,000
Payment to Partners (see schedule) (156000) (16000)
Balances
Additonal investment of Tak 6000
Balances 6000
Payment to Partners (6000)

Journal Entries
a) Sale of other assets and distribution of losses b) Payment of Liabilities c) Offset to capital deficien
Cash 340,000 Liabilities 224,000 Tak,Loan 10,000
Tik, Capital 136,000 Cash 224,000 Tak, Capital
Tak, Capital 136,000
Toe, Capital 68,000
Other Assets 680,000

d) Payment to partners with accompanying schedule e) Additional investment of Tak

Toe,Loan 16,000 Cash 6,000
Tik, Capital 50,000 Tak, Capital 6,000
Toe, Capital 90,000
Cash 156,000
 Capital
Tik Tak Toe
4 4 2
190,000 120,000 160,000
8,000 8,000 4,000
198,000 128,000 164,000

198,000 128,000 164,000

(198000) (128000) (164000)

c) Payment to partners
Tak, Loan 10,000
Toe, Loan 16,000
Tik, Capital 198,000
Tak, Capital 128,000
Toe, Capital 164,000
Cash 516,000

Capital
Tik Tak Toe
4 4 2
190,000 120,000 160,000
(72,000) (72000) (36000)
118,000 48,000 124,000

118,000 48,000 124,000

(118000) (48000) (124000)

c) Payment to partners
Tak,Loan 10,000
Toe, Loan 16,000
Tik, Capital 118,000
Tak, Capital 48,000
Toe, Capital 124,000
Cash 316,000
 Capital
Tik Tak Toe
4 4 2
190,000 120,000 160,000
(124,000) (124000) (62000)
66,000 (4,000) 98,000

66,000 (4,000) 98,000

4,000
66,000 98,000
(66000) (98000)

c) Offset to capital deficiency

Tak,Loan 4,000
Tak, Capital 4,000

Capital
Tik Tak Toe
4 4 2
190,000 120,000
160,000
(136000) (136000) (68000)
54,000 (16,000) 92,000

54,000 (16,000) 92,000

10,000
 54,000 (6,000) 92,000
(50000) (90000)
4,000 (6000) 2,000
6,000
4,000 2,000
(4000) (2000)

c) Offset to capital deficiency

Tak,Loan 10,000
Tak, Capital 10,000

f) Final payment to partners

Tik,Capital 4,000
6,000 Toe,Capital 2,000
Cash 6,000

Capital
Tik Tak Toe
4 4 2
190,000 120,000
160,000
(172000) (172000) (86000)
18,000 (52,000) 74,000

18,000 (52,000) 74,000

10,000
18,000 (42,000) 74,000
(28000) 42,000 (14000)

(10000) 60,000
10000 (10,000)
50,000
(50,000)

c) Offset to capital deficiency

Tak,Loan 10,000
Tak, Capital 10,000
 e) Final payment to partners
Toe,Loan 16,000
Toe,Capital 50,000
Cash 66,000

Capital
Tik Tak Toe
4 4 2
190,000 120,000160,000
(200000) (200000) (100000)
( (16,000) 92,000

54,000 (16,000) 92,000

10,000
54,000 (6,000) 92,000
(50000) (90000)
4,000 (6000) 2,000
6,000
4,000 2,000
(4000) (2000)

c) Offset to capital deficiency

Tak,Loan 10,000
Tak, Capital 10,000

f) Final payment to partners

Tik,Capital 4,000
6,000 Toe,Capital 2,000
Cash 6,000
 3T Partnership
Schedule to Accompany Statement of Liquidation
December 31, 2019
Tik Tak Toe
Capital balances 54,000 (6,000) 92000
Add:loan balances 16000
Total partners' interest 54000 (6,000) 108000
restricted interests- possible loss to 6,000 (4000) 6000 (2000)
to Tik and Toe in the ratio of 4:2 if tak fails to pay
his deficiency
Free interest-amount to be paid to partner 50,000 106000
Payment to apply on:
Loan 16000
Capital 50000 90000
Cash Settlement 50000 106000

3T Partnership
Schedule to Accompany Statement of Liquidation
December 31, 2019
Tik Tak Toe
Capital balances 18,000 (42,000) 74000
Add:loan balances 16000
Total partners' interest 18000 (42,000) 90000
restricted interests- possible loss to 42,000 (28000) 42000 (14000)
to Tik and Toe in the ratio of 4:2 if tak fails to pay
his deficiency
Balances (10000) 76000
restricted interest- Possible loss of 10,000 to toe 10,000 (10,000)
if tak fails to pay his deficiency
Free interest-amount to be paid to partner 66,000

Payment to apply on:

Loan 16000
Capital 50000
Cash Settlement 66000
 3T Partnership
Schedule to Accompany Statement of Liquidation
December 31, 2019
Tik Tak Toe
Capital balances 54,000 (6,000) 92000
Add:loan balances 16000
Total partners' interest 54000 (6,000) 108000
restricted interests- possible loss to 6,000 (4000) 6000 (2000)
to Tik and Toe in the ratio of 4:2 if tak fails to pay
his deficiency
Free interest-amount to be paid to partner 50,000 106000

Payment to apply on:

Loan 16000

Capital 50000 90000

Cash Settlement 50000 106000
B.
Total Capital (22,000+20,600+27,400+18000) 88000
Less Cash left for distribution to partners 24000
Loss on realization of assets 64000

Doy Rey May

Capital balance before liquidation 22000 20600 27400
loss on realization share in the ratio of 4:3:2:1 (25600) (19200) (12800)
Balances (3600) 1400 14600
Additional loss to Rey,May and Fay for the deficiency of Doy 3600 (1800) (1200)
shared in the ratio of 3:2:1
Balances (400) 13400
Additonal loss to May and Fay for the deficiency of Rey shared 400 (267)
in the ratio of 2:1
Cash Settlement 13133

C.
1. Total Loss from the liquidation of the partnership
Total Capital (164,000+134,00+144,000) 442,000
Less Cash left for distribution to partners
Loss on realization of assets

3T Partnership
Statement of Liquidation
December 31, 2019

Cash Other AsseLiabilities

Profit and loss ratio
Balance before liquidation 40,000 680,000 224,000
Realization and distribution of loss 700,000 (680,000)
Balances 740,000 224,000
Payment of Liabilities (224,000) (224,000)
Balances 740,000
Payment to Partners (740000)
 Fay
18000
(6400)
11600
(600)

11000
(133)

10867

T Partnership
ment of Liquidation
ember 31, 2019
Loan Capital
Tak Toe Tik Tak Toe
4 4 2
10,000 16,000 190,000 120,000 160,000
8,000 8,000 4,000
10,000 16,000 198,000 128,000 164,000

10,000 16,000 198,000 128,000 164,000

(10000) (16000) (198000) (128000) (164000)