Chapter 4 Answer Keys Mas by Roque
68 Chapter 4
CHAPTER 4
MULTIPLE CHOICE ANSWERS AND SOLUTIONS
4-1: a PAR BOOGIE BIRDIE Capital balances before realization P 20,000 P 16,000 P 10,000 Loss on liquidation, P40,000 ( 20,000) ( 12,000) ( 8,000) Cash distribution P – P 4,000 P 2,000
4-2: c PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Gain of P10,000 (150,000-140,000) __6,000 __2,000 __2,000 Cash distribution P 56,000 P 52,000 P 12,000
4-3: b PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Loss of P40,000 (P140,000-P100,000) ( 24,000) ( 8,000) ( 8,000) Cash distribution P 26,000 P 42,000 P 2,000
4-4: a PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Loss of P70,000 (P140,000-P70,000) ( 42,000) ( 14,000) ( 14,000) Balances P8,000 P 36,000 ( 4,000) Absorption of Pong's deficiency, 6:2 ( 3,000) ( 1,000) __4,000 Cash distribution P 5,000 P 35,000 –
4-5: b COLT MARK CLOCK Capital balances before liquidation (net of loans) P290,000 P200,000 P220,000 Loss of P130,000, 4:3:3 ( 52,000) ( 39,000) ( 39,000) Cash distribution P238,000 P161,000 P181,000
4-6: c JONAS CARLOS TOMAS Capital balances before liquidation P160,000 P 45,000 P 55,000 Loss of P60,000, 40:50:10 ( 24,000) ( 20,000) ( 6,000) Cash distribution P136,000 P 25,000 P 49,000
Partnership Liquidation 69
4-7: a ARIEL BERT CESAR Capital balances before liquidation P40,000 P180,000 P 30,000 Loss of P100,000, 4:3:3 ( 40,000) ( 30,000) ( 30,000) Cash distribution P – P150,000 P –
4-8: b NORY OSCAR Capital balances before realization P23,000 P 13,500 Additional investment by Nory for the unpaid liabilities (33,000-18,000) 15,000 – Loss on realization (schedule 1) ( 30,900) ( 20,600) Payment by Oscar to Nory P 7,100 ( P7,100) Schedule 1 Total capital before liquidation P 36,500
CHAPTER 4
MULTIPLE CHOICE ANSWERS AND SOLUTIONS
4-1: a PAR BOOGIE BIRDIE Capital balances before realization P 20,000 P 16,000 P 10,000 Loss on liquidation, P40,000 ( 20,000) ( 12,000) ( 8,000) Cash distribution P – P 4,000 P 2,000
4-2: c PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Gain of P10,000 (150,000-140,000) __6,000 __2,000 __2,000 Cash distribution P 56,000 P 52,000 P 12,000
4-3: b PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Loss of P40,000 (P140,000-P100,000) ( 24,000) ( 8,000) ( 8,000) Cash distribution P 26,000 P 42,000 P 2,000
4-4: a PING PANG PONG Capital balances before liquidation P 50,000 P 50,000 P 10,000 Loss of P70,000 (P140,000-P70,000) ( 42,000) ( 14,000) ( 14,000) Balances P8,000 P 36,000 ( 4,000) Absorption of Pong's deficiency, 6:2 ( 3,000) ( 1,000) __4,000 Cash distribution P 5,000 P 35,000 –
4-5: b COLT MARK CLOCK Capital balances before liquidation (net of loans) P290,000 P200,000 P220,000 Loss of P130,000, 4:3:3 ( 52,000) ( 39,000) ( 39,000) Cash distribution P238,000 P161,000 P181,000
4-6: c JONAS CARLOS TOMAS Capital balances before liquidation P160,000 P 45,000 P 55,000 Loss of P60,000, 40:50:10 ( 24,000) ( 20,000) ( 6,000) Cash distribution P136,000 P 25,000 P 49,000
Partnership Liquidation 69
4-7: a ARIEL BERT CESAR Capital balances before liquidation P40,000 P180,000 P 30,000 Loss of P100,000, 4:3:3 ( 40,000) ( 30,000) ( 30,000) Cash distribution P – P150,000 P –
4-8: b NORY OSCAR Capital balances before realization P23,000 P 13,500 Additional investment by Nory for the unpaid liabilities (33,000-18,000) 15,000 – Loss on realization (schedule 1) ( 30,900) ( 20,600) Payment by Oscar to Nory P 7,100 ( P7,100) Schedule 1 Total capital before liquidation P 36,500