The assets and equities of the Perdales, Ceballus and Bandonell partnership at the end of itsfiscal year ended Oct. 31, 2019 are as follows:AssetsEquitiesCashP15,000LiabilitiesP50,000Receivable-net20,000Loan from Bandonell10,000Perdales, Capital (30%)Ceballus, Capital (50%)Bandonell, Capital (20%)Inventory40,00045,000Property and Equipment70,00030,000Loan to Ceballus5,00015,000P150,000P150,000The partners decided to liquidate the partnership. They estimated that the non-cash assets,other than the loan to Ceballus, can be converted into P100,000 cash over the two-monthperiod ending Dec. 31, 2019. Cash is to be distributed to the appropriate parties as it becomesavailable during the liquidation process.If P65,000 is available for the first distribution, it should be paid toPriority creditors P60,000, Perdales P5,000,Ceballus P0, Bandonell POPriority creditors P50,000, Perdales P12,000,Ceballus P0, Bandonell P3,000Priority creditors P60,000, Perdales P1,500,Ceballus P2,500, Bandonell P1,000Priority creditors P50,000, Perdales P5,000,Ceballus P0, Bandonell P10,000

Through a proper formal agreement, two or more parties agree to operate and manage a business and…

The assets and equities of the Perdales, Ceballus and Bandonell partnership at the end of its fiscal year ended Oct. 31, 2019 are as follows: Assets Equities Cash P15,000 Liabilities P50,000 Receivable-net 20,000 Loan from Bandonell 10,000 Perdales, Capital (30%) Inventory Property and Equipment 40,000 45,000 Ceballus, Capital (50%) Bandonell, Capital (20%) 70,000 30,000 15,000 P150,000 The partners decided to liquidate the partnership. They estimated that the non-cash assets, Loan to Ceballus 5,000 P150,000 other than the loan to Coballus can be converted inte D100 000 cach over tbe twe menth

The assets and equities of the Perdales, Ceballus and Bandonell partnership at the end of its fiscal year ended Oct. 31, 2019 are as follows: Assets Equities Cash P15,000 Liabilities P50,000 Receivable-net 20,000 Loan from Bandonell 10,000 Perdales, Capital (30%) Inventory Property and Equipment 40,000 45,000 Ceballus, Capital (50%) Bandonell, Capital (20%) 70,000 30,000 15,000 P150,000 The partners decided to liquidate the partnership. They estimated that the non-cash assets, Loan to Ceballus 5,000 P150,000 other than the loan to Coballus can be converted inte D100 000 cach over tbe twe menth

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance)P(32,000) Levis, Drawing (debit balance) (12,000) Jag, Loan 40,000 Guess, Capital 164,000 Jag, Capital 134,000 LevisCapital 144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement. What is the loss of the partnership
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