Quiz 22

Danao, Diaz, Dolor and Dungca Partnership

Statement of Partners' Equity
For the Year Ended December 31, 2010
Danao
P 84,000.00

Diaz
P 75,000.00

Dolor
P 48,000.00

Capital, January 1
Distribution of profit:
Jan. 1 - Sept. 30
13,500.00
10,125.00
5,062.50
Oct. 1 - Dec. 31
4,705.15
3,528.86
1,764.43
Transfer of Dungca capital to
his estate
Retirement of Dolor
7,832.42
5,874.31 ( 54,826.93)
Capital, December 31
P110,037.57
P 94,528.17
--------* P45,000 P33,750 (P50,062.50 x 10% x 3/12)) = P9,998.44

Dungca
P45,000.00

Total
P252,000.00

5,062.50
(50,062,50)

33,750.00
9,998.44*
( 50,062.50)

---------

( 41,120.20)
P204,565.74

Income Summary
Danao, Capital
Diaz, Capital
Dolor, Capital
Dungca, Capital

33,750.00

Dungca, Capital
Payable to the Estate of Dungca

50,062.50

Income Summary
Payable to the Estate of Dungca

1,251.56

Income Summary
Danao, Capital
Diaz, Capital
Diaz Costa, Capital

9,998.44

Dolor, Capital

13,500.00
10,125.00
5,062.50
5,062.50
50,062.50
1,251.56
4,705.15
3,528.86
1,764.43
54,826.93

Notes Payable
Danao, Capital
Diaz, Capital

Quiz 23
1.
Asset

41,120.20
7,832.42
5,874.31

Book Value

Accounts Receivable
Merchandise Inventory
Prepaid Advertising
Machinery and Equipment

P 60,000
50,000
2,000
40,000
P152,000

Cash
Realized
P64,000
25,000
800
24,000
P113,800

(Gain) Loss
(P 4,000)
25,000
1,200
16,000
P 38,200

2.
Evasco-Ellor Partnership
Statement of Liquidation
January 1 31, 2010
Cash
Balances before
liquidation
Sale of assets and
distribution of loss
Balances
Unrecorded liabilities
Balances
Payment of liabilities
Balances
Additional investment of
Ellor

Other
Assets

P 1,000

P152,000

113,800
P114,800

(152,000)

P114,800
(109,000)
P 5,800
4,000

Accounts
Payable

Notes
Payable

P20,000

P 86,000

P20,000
2,000
P22,000
(22,000)

P 86,000
1,000
P 87,000
(87,000)

CAPITAL
Evasco (4)
Ellor (6)
P 30,000 P 17,000
(15,280)
P 14,720
( 1,200)
P 13,520

(22,920)
(P 5,920)
( 1,800)
(P 7,720)

P 13,520

(P 7,720)
4,000

Balances
Additional loss to
Evasco for the
deficiency of Ellor
Balances
Payment to Evasco

P 9,800

P 13,520

(P 3,720)

( 3,720)
P 9,800
( 9,800)

3,720

P 9,800
( 9,800)

3.
a.

b.

c.

d.

Cash
Evasco, Capital
Ellor, Capital
Allowance for Uncollectible Accounts
Accumulated Depreciation
Accounts Receivable
Merchandise Inventory
Prepaid Advertising
Machinery and Equipment

Evasco, Capital
Ellor, Capital
Accounts Payable
Notes Payable

113,800
15,280
22,920
20,000
60,000
80,000
50,000
2,000
100,000

1,200
1,800
2,000
1,000

Accounts Payable
Notes Payable
Cash

22,000
87,000

Cash
Ellor, Capital

4,000

109,000
4,000

e.
f.

Evasco, Capital
Ellor, Capital

3,720

Evasco, Capital
Cash

9,800

3,720
9,800

Quiz 24

Cash
Balances before liquidation
Sale of assets and dist. of loss
Balances
Payment of liabilities
Balances
Offset of loan against deficiency of
Empoy
Balances
Additional loss to Estoy and Empoy
for the deficiency of Eloy
Balances
Additional investment by Empoy and
Eloy
Balances
Payment to Estoy

EEE Partnership
Statement of Liquidation
January 1 31, 2010
Non-cash
Accounts Loan Payable to
Assets
Payable
Empoy
P 475,000 P 240,000
P 30,000
(475,000)
P 240,000
P 30,000
( 240,000)
P 30,000

Estoy
P120,000
(43,000)
P 77,000

CAPITAL
Empoy
P 50,000
(86,000)
(P36,000)

Eloy
P 60,000
(86,000)
(P 26,000)

P 77,000

(P36,000)

(P 26,000)

P 45,000

P 77,000

30,000
(P 6,000)

(P26,000)

P 45,000

( 333)
P 76,667

(
667)
(P 6,667)

1,000
(P25,000)

6,667

25,000

P 25,000
260,000
P 285,000
( 240,000)
P 45,000

31,667
P 76,667
( 76,667)

30,000)

P 76,667
(76,667)

2.
a,

Cash

260,000
43,000
86,000
86,000

Estoy, Capital
Empoy, Capital
Eloy, Capital
Accounts Receivable
Inventories
Property, Plant and Equipment
b.
c.

d.

e.

f.

75,000
100 000
300,000

Accounts Payable
Cash

240,000
240,000
30,000

Loan Payable to Empoy

Empoy, Capital

30,000
333
667

Estoy, Capital
Empoy Capital
Eloy, Capital

1,000

Cash
Empoy, Capital
Eloy, Capital

31,667

Estoy, Capital

76,667

6,667
25,000

Cash

76,667

3.
Personal assets
Applied to
Personal liabilities
Partnership liabilities
Balances

Estoy

Empoy

Eloy

P250,000

P300,000

P350,000

( 230,000)

( 240,000)
( 6,667)
P 53,333

( 325,000)
( 25,000)
---

P 20,000

Quiz 26
ASC Partnership
Cash Priority Program
June 30, 2010

Capital balances before liquidation

Add Loan balances
Total partners interest
Profit and loss ratio
Loss absorption balance
Allocation I Cash to Santos to reduce his balance to that of
Alfonso and Censon (P500,000 x 30% = P150,000)
Balances

Alfonso
P175,000
25,000
P200,000
50%
P400,000

Santos
P300,000

Censon
P100,000

P300,000
30%
P1,000,000

P100,000
20%
P500,000

P400,000

(500,000)
P500,000

P500,000

PAYMENTS
Alfonso
Santos
Censon

P150,000

Allocation 2 Cash to Santos and Censon to reduce their balances

to that of Alfonso
(P100,000 x 30% = P30,000;
P100,000 x 20% = P20,000)
Balances
P400,000
Allocation II Further cash distributions may be made in the profit and loss ratio
Cash available for distribution = P230,000 + P100,000 P150,000 = P180,000

(100,000)
P400,000

(100,000)
P400,000

P30,000
P30,000

2.
Alfonso
Allocation 1
Allocation 2 P30,000 x 3/5
Total

P ----

Santos
P150,000
18,000
P168,000

Censon
P12,000
P12,000

Total
P150,000
30,000
P180,000

20,000
P170,000