Practical Accounting 2 Straight Problem No. 1

Solve the following problems in partnerships.


AlDub, KathNiel, LizQuen, and JaDine are partners in Loveteam Partnership, which is being liquidated. The summary of the statement of financial position is given to you:

40%

30% 15%

15%

Cash

Non-Cash Assets Liabilities Loan from AlDub Aldub, Capital KathNiel, Capital LizQuen, Capital JaDine, Capital

144,000

256,000 35,000 67,500 70,460 61,440 81,140 84,460

40 percent of the non-cash assets were realized at P90,000. Meanwhile, P2,400 is being set aside for anticipated liquidation expenses. They wanted to know from you how much cash would be distributed to them as soon as it is available.

Requirements:

  1. How much would each partner receive in the particular installment?
  2. (Independent case:) Assume that 60 percent of the non-cash assets were sold for P100,000, and liquidation expenses set aside amount to 3,500. Determine how much cash this time will be given to them.
  3. If AlDub received the total cash of 40,000 as a result of liquidation, how much did the other partners receive? What was the amount realized by the sale of all non-cash assets?

Dara, Minzy, CL, and Bom are sharing profits and losses in 2NE1 Partnership. Net income for the year was 375,000. Their agreement is as follows:

  1. Salaries: Dara, 10,000; Minzy, 8,000; CL, 5,000; and Bom, 7,000.
  2. Interest will be based on 10 percent of their ending capital balance. Respective ending capital balances of the four are 240,000; 210,000; 198,000, and 204,000.
  3. Bonus: To Dara. Bonus will be computed on 5 percent of net income after bonus and tax. Tax rate is 30 percent.
  4. Remaining income or loss to be distributed to the four at 1:2:3:4 ratio respectively.

Requirement:

  1. Prepare a schedule for the distribution of income among the partners.
  2. How much will be the share of Minzy in the net income?

G-Dragon and Hyuna are partners in K-Pop Partnership, sharing profits and losses. Agreement calls for salaries of 5,000 for G-Dragon and 7,000 for Hyuna. In addition, the latter is entitled for bonus of 10 percent of net income before bonus and taxes. Remaining income is to be divided between the two at 60:40 ratio, and remaining losses are divided at 40:60 ratio. Losses incurred by the partnership amounted to 57,000.

Requirement:

  1. Prepare schedule of distribution of income between the two.
  2. How much will Hyuna receive?

P2 Problem prepared by: TweetNewscaster


Featured Image Credit: Audit Firm Visit photo from St. Scholastica College site. For illustrative purposes only.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s