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
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1 – Partnership Ownership Changes & Liquidations - Heading Chapter 14: Partnership Ownership Changes & Liquidations 3 – Partnership Dissolution - #1 • Dissolution is a legal termination • UPA § 31 & 32: – admission or withdrawal of Pr results in Pp dissolution • When act of dissolution occurs‚ Prs may – continue business as new Pp or – liquidate 2 – Partnership Dissolution - Heading Partnership Dissolution 4 – Partnership Dissolution - #2 • Remember dissolution is not
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and Formation of a Partnership A partnership is a contract whereby two or more persons bind themselves to contribute money‚ property or industry into a common fund with the intention of dividing the profit among themselves (Article 1767 of the Civil Code of the Philippines). This joint effort may be supported by a partnership agreement known as the Articles of Co-Partnership‚ which is an agreement in writing among the partners governing the nature and terms of the partnership contract. A written
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Introduction to Partnership Accounting Sole Proprietorship – owned by one person assume the profit and expenses Service – oriented business – engages in rendering services Merchandising businesses – buy and sell goods for profit Partnership – composed of two or more persons to contribute to a common fund for a profit that will be divided among themselves Money and property include: cash‚ investment in trading securities‚ trade and other receivables‚ prepaid expenses‚ PPE Industry: service‚ labor
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1. The accounts of the partnership of Erwin‚ Ralph and Mon at the end of its fiscal year on September 30‚ 2013‚ are as follows: Cash P15‚000 Loan from Mon P10‚000 Other Assets 130‚000 Erwin‚ Capital (30%) 45‚000 Loan to Ralph 5‚000 Ralph Capital (50%) 30‚000 Liabilities 50‚000 Mon‚ Capital (20%) 15‚000 If Mon received P9‚000 on the first distribution of cash‚ the cash realized from the initial sale of asset was 65‚000 2. JM and PK‚ having capital balances of P245‚000 and P131
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namely‚ Errors due to omission and Errors on amount recorded‚ account title and accounting treatment. Correcting Entry is a journal entry designed to remove accounting errors made in the general journal in the general journal and general ledger. Partnership by the definition of the Civil Code of the Philippines is that
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corporation‚ a limited liability company‚ a limited partnership‚ or a general partnership. “A general partnership‚ the liability of each partner for partnership debts is unlimited. Thus‚ these partners are at risk for more than the amount of their capital investment in the partnership.” In fact‚ one of the original investors‚ Mike wants to become a passive investor in CTC and does not liable for all partnership debts. The choice of a general partnership entity is not suggested to CTC‚ because it is not
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AGENCY‚ PARTNERSHIP AND TRUSTS DIGESTS (2013 – 2014) ATTY. JOAQUIN OBIETA G.R. No. L-45441 MORA ELECTRIC CO. vs. MATIC June 26‚ 1939 J.: Petitioner: Mora Electric Co.‚ Inc. Respondents: Paulino Matic and Benita Quiogue Vda. Del Rosario ISSUE: FACTS: Matic obtained from Manila City a concession to provide the lighting system of Manila cemeteries on All Souls’ Day of 1934. The amount was P8‚773 to be guaranteed by Luzon Surety Co. Matic then authorized Quiogue to contract with Mora
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Associate An entity‚ including an unincorporated entity such as a partnership‚ over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture. Equity method 1. ac title named “Investment in associate” 2. Cost‚ it initially recognized at cost 3. Post acq P&L‚ the carrying amount is increased or decreased to recognize the investor’s share of the P&L of the investee after the date of acq 4. Dividend received‚ distributions received from
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A Chapter 7 bankruptcy is a(n) Liquidation Where should a company undergoing reorganization report the gains and losses resulting from the reorganization? on the income statement‚ separate from other gains and losses. How should liabilities (except for deferred income taxes) be reported by a company using fresh start accounting? at the present value of future cash payments. Which one of the following unsecured liabilities has the highest priority when an insolvent company is about to be liquidated
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