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Partnership Dissolutiona and Liquidation For Students
Partnership Dissolutiona and Liquidation For Students
San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com
DISSOLUTION
Problem 1: The balance sheet of the partnership on January 1, 2020 is presented below:
On August 1, 2020, ABC partnership admitted D as a new partner in the partnership by purchasing 20%
interest, with a profit and loss share of 15% and paid P550,000. The net income of the partnership prior to
admission amounted to P200,000.
Req. 2: What is the amount received by partner C from the P550,000 paid by new partner D?
Req. 3: Assuming the partners agree to revalue its equipment before admitting new partner D, what is the
capital interest of partner B after admission of new partner D?
Problem 2: A and B are partners who shares profit and loss in the ratio of 3:2, respectively with the
capital balances of:
A 250,000
B 300,000
C was admitted into the partnership for 20% interest in capital and 25% interest in profit or loss of the
partnership. The capital of A after admission of new partner C amounted to P250,000. The net income
before admission amounted to P50,000.
Req. 2: Using the same data but new partner C invested cash amounting to P120,000, what is the
amount of bonus given by partner B?
The net income of the partnership in year 2020 amounted to P250,000. October 1, 2020, the partners
agreed to admit D as a new partner in the firm for 25% interest in capital and 20% in profit or loss for a
contribution of P412,500. What is the capital interest of partner B on December 31, 2020?
Problem 4: The January 1, 20x1, balance sheet of SHINE CO. is presented below:
The partners share profits and losses as follows A 20%; B 30% and C 50%. Partner B is retiring from the
partnership and the partners have agreed that the non-cash assets should be adjusted to their fair value
of P1,200,000 at December 31, 20x1. The partnership net income for year 20x1 is P250,0000, They
further agree that B will receive P554,250 cash for his interest exclusive of the loan, which is to paid in full
by the partnership.
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RFERRER/RLACO/AT ANG /PDEJESUS
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com
Problem 5: The balance sheet of the ABC Partnership on January 1, 2021 is presented below:
The partners share profits and losses as follows A 40%; B 20% and C 40%. On December 31, 2021,
Partner B is retiring from the partnership and the partners have agreed that the non-cash assets should
be adjusted to their fair value of P770,000 at December 31, 20x1. The partnership net income for year
2020 is P150,0000, They further agree that B will receive P450,000 cash for his total interest in the
partnership.
LIQUIDATION
Problem 1: A, B and C decided to dissolve the partnership on November 1, 2030. The capital balances of
the partners and their corresponding profit and loss ratio on January 1, 2030 are presented below:
The net income from January 1 to October 31 is P220,000. Also on this date, cash and liabilities are
P200,000 and P450,000, respectively. For partner A to receive P276,000 in full settlement of his interest.
Req. 1: What is the amount of cash realized from the sale of non-cash assets of the company?
Problem 2: The balance of accounts of ABC partnership before liquidation is presented below:
On the first month of liquidation, the non-cash assets are sold for P110,000. The liquidation expenses of
P10,000 are paid, and additional liquidation expenses are anticipated. Liabilities from outside creditors
are paid amounting to P25,000, and sufficient cash is retained to insure the payment to creditors before
making payments to partners. The total possible loss amounted to P180,000. On the first payment to
partners, A, receives P30,000.
Problem 3: Partners A, B and C decided to liquidate the partnership on May 1, 2021. The balance sheet
of the company On May 1, 2021 is presented below:
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RFERRER/RLACO/AT ANG /PDEJESUS
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com
The cash realized from the sale of non-cash assets amounted to P800,000. The liquidation expense paid
amounted to P250,000. The total liabilities paid to outside creditors amounted to P100,000
Problem 4:The balance sheet of the partnership of ABCD Co just before liquidation is presented below:
A, loan 5,000
A, capital (40%) 27,500
B. capital (30%) 25,750
C, capital (20%) 34,250
D, capital (10%) 22,500
Certain assets are sold for P30,000 and this is distributed to the partners. How much cash should C
receive?
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RFERRER/RLACO/AT ANG /PDEJESUS