Scribd
Upload
44 views1 page

Accounting 3

The partnership is dissolving and its assets are being distributed. It had assets of $940,000 including $65,000 in cash and other assets of $875,000. Liabilities were $280,000 and each partner had a capital balance: Pudge $174,000, Nessaj $181,000, Omni $165,000, and Slark $140,000. Other assets were sold for $450,000, resulting in a gain or loss to be distributed to partners.

Uploaded by

Ma. Alexandra Teddy Buen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
44 views1 page

Accounting 3

The partnership is dissolving and its assets are being distributed. It had assets of $940,000 including $65,000 in cash and other assets of $875,000. Liabilities were $280,000 and each partner had a capital balance: Pudge $174,000, Nessaj $181,000, Omni $165,000, and Slark $140,000. Other assets were sold for $450,000, resulting in a gain or loss to be distributed to partners.

Uploaded by

Ma. Alexandra Teddy Buen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Problem 2:

Pudge, Nessaj, Omni, & Slark share profits in the ratio of 1:1:2:1, respectively. The partnership cannot
meet its obligations to creditors and dissolution is authorized on Sept. 30, 2013. A statement of financial
position for the partnership on this date shows balances as follows:

Assets Liabilities and Equity


Cash P 65,000 Liabilities P 280,000
Other assets 875,000 Pudge, Capital 174,000
Nessaj, Capital 181,000
Omni, Capital 165,000
Slark, Capital 140,000
Total Liabilities & Equity P 940,000
Total assets: P 940,000

The liabilities include a P 40,000 loan from Omni.


The personal status of partners on this date is determined to be as follows:

Partners Cash and cash value of personal assets Personal liabilities


Pudge P 290,000 P 150,000
Nessaj 100,000 160,000
Omni 150,000 120,000
Slark 210,000 275,000

The other assets of the partnership are sold and realized P 450,000.

Determine the following:


1. Share of Pudge in the gain (loss) on realization
2. Share of Omni in the gain (loss) on realization
3. The amount that will be paid to the personal creditors of Slark
4. The amount that will be received by Nessaj from the distribution of cash
5. the amount that will be paid to the personal creditors of Pudge
6. the amount that will be paid to the personal creditors of Omni

You might also like