Chapter 4

Page 4-43
Problem 12
1
Cash Sarabia, capital Selisana, capital Gevera, capital
Balance 720,000 600,000 -240,000 360,000
Loss absorption -120,000 240,000 -120,000
Balance 720,000 480,000 0 240,000
Payment to partners -720,000 -480,000 0 -240,000

2
Cash Sarabia, capital Selisana, capital Gevera, capital
Balance 720,000 600,000 -240,000 360,000
Add investment 240,000 240,000
Balance 960,000 600,000 0 360,000
Payment to partners -960,000 -600,000 0 -360,000

3
Cash Sarabia, capital Selisana, capital Gevera, capital
Balance 720,000 600,000 -240,000 360,000
Add investment 144,000 144,000
Balance 864,000 600,000 -96,000 360,000
Loss absorption -48,000 96,000 -48,000
Balance 864,000 552,000 0 312,000
Payment of liab -864,000 -552,000 0 -312,000
Page 4-47 to 4-51
Multiple Choice
1
Asset = Liabilities + Equity
0 = 50,000 + _________________
0.30 0.20 0.50
Cash OA Liability Mactan, cap Macadang, cap Pangan, cap
Balance 350,000 250,000 350,000 950,000 Beg equity
Realization -300,000 -200,000 -500,000 -1,000,000 Loss
Balance 0 0 50,000 50,000 50,000 -150,000 -50,000 Resulting equity
Loss absorption -90,000 -60,000 150,000
Balance 0 0 50,000 -40,000 -10,000 0
Additional investment 50,000 40,000 10,000
Balance 50,000 0 50,000 0 0 0
Payment of liab -50,000 -50,000

2
0.30 0.30 0.20 0.20
Cash OA Liability Rod, loan Reyes, loan Ong, cap Rod, cap Pamittan, cap Reyes, cap
Balance 100,000 1,800,000 750,000 60,000 50,000 420,000 315,000 205,000 100,000
Realization 800,000 -1,800,000 -300,000 -300,000 -200,000 -200,000 -1,000,000
Balance 900,000 0 750,000 60,000 50,000 120,000 15,000 5,000 -100,000
Payment of liab -750,000 -750,000
Balance 150,000 0 0 60,000 50,000 120,000 15,000 5,000 -100,000
Right of offset -50,000 50,000
Balance 150,000 0 0 60,000 0 120,000 15,000 5,000 -50,000
Additional investment 50,000 50,000
Balance
3
Asset Liab + Equity
82,000 82,000

1/2 1/3 1/6

Cash OA Liability Amurao Estoque Zulueta
Balance 3,000 79,000 12,000 40,000 25,000 5,000
Realization 37,000 -79,000 -21,000 -14,000 -7,000 -42,000 Loss
Balance 40,000 0 12,000 19,000 11,000 -2,000
Payment of liab -12,000 -12,000
Balance 28,000 0 0 19,000 11,000 -2,000
Loss absorption -1,200 -800 2,000
Balance 28,000 0 0 17,800 10,200 0
Payment to partners -28,000 -17,800 -10,200

4
Ramos Seechua Tria
Capital 100,000 80,000 300,000
Drawing -60,000 -40,000 -20,000
Share in profit 24,000 24,000 24,000
Adjusted capital 64,000 64,000 304,000

Asset = Liabilities + Equity

0 = 84,000 + _________________

Cash OA Liability Ramos Seechua Tria

Balance 64,000 64,000 304,000 432,000 Beg equity
Realization -172,000 -172,000 -172,000 -516,000 Loss
Balance 0 0 84,000 -108,000 -108,000 132,000 -84,000 Resulting equity
Loss absorp 108,000 -54,000 -54,000
Balance 0 0 84,000 0 -162,000 78,000
Add investment 162,000 162,000
Balance 162,000 0 84,000 0 0 78,000
Payment of liab -84,000 0 -84,000 0 0
Balance 78,000 0 0 0 0 78,000
Payment to partners -78,000 0 0 0 0 -78,000
6
Asset Liab + Equity
1,800 63,000

1/7 1/5 2/7 3/8

Cash OA Liability Garachico Dugan Pascua Cerda
Balance 1,800 61,200 3,000 1,000 25,000 25,000 9,000
Realization 23,200 -61,200 -5,429 -7,238 -10,857 -14,476 -38,000 Loss
Balance 25,000 0 3,000 -4,429 17,762 14,143 -5,476
Liab -3,000
Balance 22,000

9-13
Jerusalem Rebusora Lazerna Total equity
Sole prop capital 641,976 728,352 -
Adjustments -
AR uncollectible -20,000 -35,000 -
Worthless inventory -5,500 -6,700 -
Other assets write off -2,000 -3,600 -
Adjusted capital Jerusalem and Rebusora 614,476 683,052 - 1,297,528 Number 9 letter A
Admission of Lazerna by investment, no bonus - - 324,382 =1,621,910 * 20% Number 11 letter D
Capital after admission 614,476 683,052 324,382 1,621,910 =1,297,528 / 80%
Transfer 34,288 -34,288 Transfer to follow 40%, 40%, 20% capital balances
Capital after transfer 648,764 648,764 324,382 1,621,910
Profit during the year 130,000 130,000 65,000 0.40
Drawings -50,000 -65,000 -28,000 648,764 Jerusalem and Rebusora should have th
Ending capital balance 728,764 713,764 361,382 Number 13 letter A 683,052 Rebusora, capital
-34,288 There is a transfer from Rebusora to Je
Number 12 letter A
Page 4-54
Problem 17
0.50 0.30 0.20
Cash OA Liability Limin, loan Limin, cap Parducho, cap Calingasan, cap
Balance 400,000 2,100,000 600,000 80,000 400,000 720,000 700,000
Realization 900,000 -1,200,000 -150,000 -90,000 -60,000 -300,000 Loss
Balance 1,300,000 900,000 600,000 80,000 250,000 630,000 640,000
Liquidation expenses -20,000 -10,000 -6,000 -4,000
Balance 1,280,000 900,000 600,000 80,000 240,000 624,000 636,000
Payment of liab -600,000 -600,000
Balance 680,000 900,000 0 80,000 240,000 624,000 636,000
Payment to partners -680,000 -276,000 -404,000
Balance 0 900,000 0 80,000 240,000 348,000 232,000

Schedule of Safe Payments

0.50 0.30 0.20
Limin, cap Parducho, cap Calingasan, cap
Capital 240,000 624,000 636,000
Loan 80,000
Total interest 320,000 624,000 636,000
Restricte interest 900,000 -450,000 -270,000 -180,000
Balance -130,000 354,000 456,000
Retricted interest 130,000 -78,000 -52,000
Free interest 0 276,000 404,000
Page 4-57
Problem 20
0.40 0.60
Cash OA AP-Trade De Guia, loan Espeleta, cap De Guia, cap
Balance 5,000 100,000 15,000 10,000 60,000 20,000
Realizatiion-Sep 60,000 -70,000 -4,000 -6,000 -10,000
Balance 65,000 30,000 15,000 10,000 56,000 14,000
Liabilities -15,000 -15,000
Balance 50,000 30,000 0 10,000 56,000 14,000
Payment to partners -49,000 -5,400 -43,600
Balance 1,000 30,000 0 4,600 12,400 14,000
Realizatiion-Oct 18,000 -30,000 -4,800 -7,200 -12,000
Balance 19,000 0 0 4,600 7,600 6,800
Payment to partners -19,000 0 0 -4,600 -7,600 -6,800

Schedule of Safe Payments

0.40 0.60
Espeleta, cap De Guia, cap
Capital 56,000 14,000
Loan 10,000
Total interest 56,000 24,000
Restricte interest 30,000
1,000
31,000 -12,400 -18,600
Free interest 43,600 5,400