Chapter 4

True Or False
1 T 11 T 21 F 31 T
2 T 12 T 22 F 32 T
3 T 13 F 23 T 33 T
4 T 14 F 24 T 34 T
5 F 15 T 25 T 35 T
6 F 16 F 26 F
7 F 17 T 27 F
8 T 18 F 28 F
9 T 19 F 29 T
10 T 20 T 30 T

Multiple Choice: Encircle the letter of your final answer.

1. D
2. A
3. B
4. B
5. A
6. A
7. C
8. C
9. D
10. D
11. D
12. D
13. B
14. C
15. D
16. B
17. A
18. C
19. A
20. C
21. D
22. A
23. C
24. C
25. B
26. A
27. D
28. B
29. B
30. D
31. D
32. B
33. B
34. B/A
 X Y Z Total
Capital 1,000,000 650,000 450,000 2,100,000
Loss on realization (375,000) (225,000) (150,000) (750,000)
625,000 425,000 300,000 1,350,000

X Y Z Total
Capital 1,000,000 650,000 450,000 2,100,000
Loss on realization (875,000) (525,000) (350,000) (1,750,000)
125,000 125,000 100,000 350,000

35. D/B
Dennis Benjie Chard
Capital 200,000 180,000 168,000
Loan
Interest 200,000 180,000 168,000
Total loss P22,000 (5,500) (6,600) (9,900)
194,500 173,400 158,100

36. A/D
Baby Fred Allan
Capital 400,000 480,000 160,000
Net Income 140,800 105,600 105,600
Interest 540,800 585,600 265,600
Total loss (99,200) (74,400) (74,400) (248,000)
441,600 511,200 191,200 1,144,000

Beg. Cash 320,000 Cash Realized 1,544,000

Cash Realized 1,544,000 less: BV of NCA (1,792,000)
Payment of liab 720,000 Loss on realization (248,000)
Payment to partners 1,144,000

37. A/C
SP 150,000 – BV 100,000 = 50,000/2 =25,000

SP 75,000 – BV 125,000 = 50,000 x 70% =35,000 Rose and 50,000 x 30% = 15,000 Mylene

38. C
A B C
Capital 30,000 60,000 39,000
Loans 21,000
Interest 30,000 60,000 60,000 150,000
Total loss (30,000) (30,000) (30,000) (90,000)
Cash Payment - 30,000 30,000 60,000

39. A
Solvency 1,240,000 Insolvent 310,000
Joven Ong Jay
Capital Interest 310,000 (310,000) (930,000)
Additional Investment of Jay 310,000
Balance 310,000 (310,000) (620,000)
Additional loss to Joven (930,000) 310,000 620,000
 40. A/B
Basty Angel Zoe Liabilities Total Loss
Capital 60,000 48,000 180,000
Drawings (36,000) (24,000) (12,000)
Net Income 13,800 13,800 13,800
Interest 37,800 37,800 181,800 50,400 307,800
Total loss on realization (102,600) (102,600) (102,600) (307,800)
Balance (64,800) (64,800) 79,200 (50,400)
Additional Loss of Angel and Zoe 64,800 (32,400) (32,400)
Balance - (97,200) 46,800
Additonal investment of Angel 97,200
Payment to partner Zoe - - 46,800

41. A
Butch Elen Pit Total
Capital Interest 210,000 168,000 162,000 540,000
Loan 60,000 (30,000) 30,000
Total Interest 270,000 168,000 132,000 570,000

42. D 120,000+180,000 – 40,000 = 260,000

43. B/A
Capital 180,000 + Liab 9,000 = 189,000 – Cash beg 6,000 = 183,000

SP 69,600
BV 183,000
Gain (loss) on realization (113,400)
X 4/21
Share of B 21,600

Cash beg. 6,000

Cash Realized 69,600
Payment of liab. (9,000)
Payment to partners 66,600

44. D
A B C total
Interest 40,000 45,000 35,000 120,000
Total loss (50,000) (25,000) (25,000) 100,000
(10,000) 20,000 10,000 20000 Available cash (80,000 cash - AP 60,000)
additional loss 10,000 (5,000) (5,000)
- 15,000 5,000
45. D/D
Cash beg. 6,250
Cash Realized 93,750
Payment of liab. (30,000)
Payment to partners 70,000

Capital 175,000
Liab 30,000
Total assets 205,000
Beg. Cash 6,250
NCA 198,750

SP 93,750
BV 198,750
Gain (loss) on realization (105,000)
 3 2 1
Mark Jom Eric Total
Capital Interest 100,000 62,500 12,500 175,000
Loss on realization (52,500) (35,000) (17,500) (105,000)
Balance 47,500 27,500 (5,000) 70,000
Additional Loss of Mark and Jom (3,000) (2,000) 5,000
Payment 44,500 25,500 -

46. B
Wonder
Batman Superman Woman
Capital 240,000 160,000 3,200,000
Loan
Interest 240,000 160,000 3,200,000
Total loss P600,000 (480,000 +40,000) (104,000) (208,000) (208,000)
136,000 (48,000) 2,992,000
(16,000) 48,000 (32,000)
120,000 - 2,960,000

47. A
A B C
Capital 480,000 390,000 420,000
Loan 150,000
Drawing (90,000) 30,000
Interest 390,000 540,000 450,000
Total loss (67,500) (67,500) (90,000) (225,000)
322,500 472,500 360,000 1,155,000

Beg. Cash 240,000 Cash Realized 1,635,000

Cash Realized 1,635,000 less: BV of NCA 1,860,000
Payment of liab 720,000 Loss on realization (225,000)
Payment to partners 1,155,000

48. C
S M E Total
Interest 90,000 60,000 30,000 180,000
Total loss (42,000) (42,000) (36,000) (120,000)
Payment to partners 60,000 48,000 18,000 (6,000) 60,000

49. B
Anton Moira Kelly Total
Capital 30,000 27,000 8,400 65,400
Net Income (loss) (8,400) (5,600) (5,600) (19,600)
Capital end 21,600 21,400 2,800 45,800
Loss on realization (15,000) (10,000) (10,000) (35,000)
Balance 6,600 11,400 (7,200) 10,800
Investment of Kelly 3,000
Balance 6,600 11,400 (4,200)
Additional loss of Anton and Moira (2,520) (1,680) 4,200
Payment 4,080 9,720 -

Cash 2,000
NCA 95,000
Total assets 97,000
Liab (51,200)
Capital end 45,800
Capital beg 65,400
Net loss (19,600)
50. A
Apple Basty Shai Total
Capital 320,000 90,000 110,000 520,000
Loss on Realization (48,000) (60,000) (12,000) (120,000)
272,000 30,000 98,000 400,000

51. A/A

Beg. Cash 50,000 Cash Realized 640,000

Cash Realized 640,000 less: BV of NCA 500,000
Payment of liab 60,000 Loss on realization 140,000
Payment to partners 630,000

John Leo Irene

A B C
Capital 180,000 240,000 70,000
Loans
Interest 180,000 240,000 70,000 490,000
Total loss 56,000 56,000 28,000 140,000
Cash Payment 236,000 296,000 98,000 630,000

52. D
S S I
Benjie Richard Ricky Total
Capital 60,000 70,000 40,000 170,000
Loss on Realization (15,000) (22,500) (12,500) (50,000)
45,000 47,500 27,500 120,000

53. B
98,000 – 70,000 = 28,000/.2 = 140,000 + 500,000 = 640,000

54. A/C

55. B
Abella Myrna Olive
Capital 80,000 80,000 80,000
Loan 20,000
Interest 80,000 100,000 80,000
Total loss on realization and liq (40,000
loss on real + 80,000 RNCA) (60,000) (12,000) (48,000)
20,000 88,000 32,000
56. A
Beg. Cash 50,000
Cash realized 580,000
Liabilities (75,000)
Payment 555,000

Total capital 1,500,000

Liabilities 75,000
Total assets 1,575,000
Beg. Cash (50,000)
NCA sold 1,525,000
57. A
A B C Total
Capital 80,000 360,000 60,000 500,000
Loss on Realization (80,000) (60,000) (60,000) (200,000)
Payment to partners - 300,000 - 300,000

58. C
Janet Lee Noy
1,050,000 750,000 1,050,000 2,850,000
(900,000) (600,000) (1,500,000) (3,000,000)
150,000 150,000 (450,000) (150,000)
(270,000) (180,000) 450,000
(120,000) (30,000) -

59. C
M N P
Capital 312,500 107,500 50,000
Loan 80,000 25,000
312,500 187,500 75,000
Loss on realization (250,000) (150,000) (100,000) (500,000)
Balance 62,500 37,500 (25,000)
Additional investment of P 25,000
Balance 62,500 37,500 -

60. B/C
35% 25% 40%
Paul Anton DJ Total
Capital 25,000 15,000 30,000
Loans 3,000 5,000 (2,000)
Interest 28,000 20,000 28,000 76,000
Available Cash after Realization 18,700
Payment of liquidation expenses (10,000)
Payment of accounts payable (6,000)
Total Available cash to partners 2,700 2,700
Total loss to be absorbed (25,655) (18,325) (29,320) (73,300)
Balance 53,655 1,675 (1,320)
Additional loss of Paul and Anton (770) (550) 1,320
Payment to partners 1,575 1,125 -

Total Interest 76,000

Accounts payable 6,000
NCA 82,000

SP 18,700
BV of NCA sold 82,000
Loss on realization (63,300)

Loss on realization (63,300)

Liquidation expenses (10,000)
Total loss (73,300)
 61. D
A B C
Capital 100,000 120,000 40,000
Net income 35,200 26,400 26,400 88,000
Capital 135,200 146,400 66,400
Total loss (24,800/40%) (24,800) (18,600) (18,600) (62,000)
Payment to partners 110,400 127,800 47,800 286,000

Payment to partners 286,000

Liabilities paid 180,000
Cash beg (80,000)
Cash Realized 386,000

62. A
John Mike Paul
Capital 70,000 60,000 30,000
Loans 30,000 10,000
Drawings 10,000 (10,000)
Total Interest 110,000 50,000 40,000 200,000
Total loss (40,000/ 1/3) (40,000) (40,000) (40,000) (120,000)
Payment to partners 70,000 10,000 - 80,000

Total interest 200,000

Divide by 40%
Total Assets 500,000
X 60%
Liabilities - outside creditors 300,000

Payment to partners 80,000

Liabilities - outside creditors 300,000
Less: Beg. cash -
Cash realized 380,000

63. D

I S S
Liabilities A B C
Capital 300,000 240,000 900,000
Drawings (180,000) (120,000) (60,000)
Net income 72,000 72,000 72,000
Balance 1,548,000 252,000 192,000 192,000 912,000
Total loss to be absorbed (1,548,000) (516,000) (516,000) (516,000)
Balance - 252,000 (324,000) (324,000) 396,000
Additional loss to B&C 324,000 (162,000) (162,000)
Balance - 252,000 - (486,000) 234,000
Additional Investment of B 486,000 486,000
Balance 486,000 252,000 - - 234,000
Settlement (486,000) (252,000) (234,000)
STRAIGHT PROBLEMS
Problem 1
Cash NCA AP A, loan B, loan A, cap B, cap C, cap
100,000 1,500,000 320,000 26,000 12,000 380,000 450,000 412,000

Realization of NCA and

distribution of gain or loss 300,000 (1,500,000) (360,000) (480,000) (360,000)
P ayment of liquidation
expense (30,000) (9,000) (12,000) (9,000)
P ayment of accounts
payable (320,000) (320,000)
Balance 50,000 - - 26,000 12,000 11,000 (42,000) 43,000
Right of offset of B (12,000) 12,000
Balance 50,000 - - 26,000 - 11,000 (30,000) 43,000
Additional Investment of B 2,000 2,000
Balance 52,000 - - 26,000 - 11,000 (28,000) 43,000
Additional loss to A and B (14,000) 28,000 (14,000)
Balance 52,000 - - 26,000 - (3,000) - 29,000
Right of offset of A (3,000) 3,000
Balance 52,000 - - 23,000 - - - 29,000
P ayment to partners
A, loan (23,000) (23,000)
C, capital (29,000) (29,000)
Balance - - - - - - - -

Problem 2
35% 45% 20%
Cash Non-Cash Liabilities A B C
Balance 15,000 110,000 75,000 5,000 15,000 30,000
Realization and dist of loss 40,000 (110,000) (24,500) (31,500) (14,000)
payment of liq. Exp. (13,500) (4,725) (6,075) (2,700)
Balance 41,500 - 75,000 (24,225) (22,575) 13,300
Payment of liabilities (41,500) (41,500)
Balance - - 33,500 (24,225) (22,575) 13,300
Additional loss of A and C (14,365.91) 22,575 (8,209)
Balance - - 33,500 (38,591) - 5,091
Additional investment of A 38,591 38,591
Balance 38,591 - 33,500 0 - 5,091
Payment of liabilities (33,500.00) (33,500) -
Balance 5,091.00 - - 0 - 5,091
payment to partner (5,091.00) (5,091)

Journal
Entries

a. Cash 40,000
A, capital 24,500
B, capital 31,500
C, capital 14,000
Non-cash 110,000

b. A, capital 4,725
B, capital 6,075
C, capital 2,700
Cash 13,500
c. Liabilities 41,500
Cash 41,500

d. A, capital 14,366
C, capital 8,209.00
B, capital 22,575

d. Cash 38,591.00
A,capital 38,591.00

e. Liabilities 33,500.00
Cash 33,500.00

f. C,capital 5,091.00
Cash 5,091.00

Problem 3

Answer
Other Tess
1. Cash assets Liabilities Helen Mara
Balances 100,000 4,700,000 800,000 1,800,000 1,000,000 1,200,000
Realization and dist of gain 5,300,000 (4,700,000) 200,000 200,000 200,000
Balances 5,400,000 800,000 2,000,000 1,200,000 1,400,000
Payment of Liabilities (800,000) (800,000)
Balances 4,600,000 - 2,000,000 1,200,000 1,400,000
Payment to partners (4,600,000) (2,000,000) (1,200,000) (1,400,000)

Journal Entries
a. Realization Cash 5,300,000
Other assets 4,700,000
Helen, cap 200,000
Mara, cap 200,000
Tess, cap 200,000

b. Payment of liabilities Liabilities 800,000

Cash 800,000

c. Payment to partners Helen, cap 2,000,000

Mara, cap 1,200,000
Tess, cap 1,400,000
Cash 4,600,000

Other
2. Cash assets Liabilities Helen Mara Tess
Balances 100,000 4,700,000 800,000 1,800,000 1,000,000 1,200,000
Realization and dist of loss 4,490,000 (4,700,000) (70,000) (70,000) (70,000)
Balances 4,590,000 800,000 1,730,000 930,000 1,130,000
Payment of Liabilities (800,000) (800,000)
Balances 3,790,000 - 1,730,000 930,000 1,130,000
Payment to partners (3,790,000) (1,730,000) (930,000) (1,130,000)

a. Realization Cash 4,490,000

Helen, cap 70,000
Mara, cap 70,000
Tess, cap 70,000
Other assets 4,700,000

b. Payment of liabilities Liabilities 800,000

Cash 800,000

c. Payment to partners Helen, cap 1,730,000

Mara, cap 930,000
Tess, cap 1,130,000
Cash 3,790,000

Problem 4
Accounts
Cash Payable Rose Jun Badet
Balances 160,000 80,000 480,000 (720,000)
Additional Investment of Badet 480,000 480,000
Balances 480,000 160,000 80,000 480,000 (240,000)
Payment of Liabilities (160,000) (160,000)
Balances 320,000 - 80,000 480,000 (240,000)
Additional loss to Rose and Jun (120,000) (120,000) 240,000
Balances 320,000 - (40,000) 360,000 -
Additional investment of rose 40,000 40,000
Balances 360,000 - - 360,000 -
Payment to partner (360,000) (360,000)

a. Additional Investment of Badet Cash 480,000

Badet, cap 480,000

b. Payment of liabilities Accounts Payable 160,000

Cash 160,000

c. Additional loss to Rose and Jun Rose, cap 120,000

Jun, cap 120,000
Badet, cap 240,000

d. Additional investment of rose Cash 40,000

Rose, cap 40,000

e. Payment to partner Jun, cap 360,000

Cash 360,000
Problem 5
Req.1
Paul Joven Jay Liabiltiy Asset
Capital Account balance (400,000) 75,000 (50,000) 875,000 500,000
Payment of liability (500,000) (500,000)
Balance (400,000) 75,000 (50,000) 375,000 -
Additional investment of paul and jay 375,000 50,000 425,000
Balance (25,000) 75,000 - 375,000 425,000
Additional loss of Joven and jay 25,000 (12,500) (12,500)
Balance - 62,500 (12,500) 375,000 425,000
Additional investment of Jay 12,500 12,500
Balance - 62,500 - 375,000 437,500
Payment of liability (375,000) (375,000)
Balance - 62,500 - - 62,500

Problem 6

Assets Liabilties Alyn Ben

11,500,000 12,500,000 (700,000) (300,000)
payment of liabilities (11,500,000) (11,500,000)
balance - 1,000,000 (700,000) (300,000)
Additional investment of alyn and ben 900,000 700,000 200,000
balance 900,000 1,000,000 - (100,000)
payment of liabilities (900,000) (900,000)
balance - 100,000 - (100,000)
Additional loss of alyn (100,000) 100,000
balance - 100,000 (100,000) -
Additional investment of alyn 100,000 100,000
balance 100,000 100,000 - -
payment of liabilities (100,000) (100,000)
- - - -

Additional investment of ALyn is P800,000 and Ben 200,000

Problem 7
1. 20% 30% 50%
Boy, Boy, Coy, Doy,
Cash Non-Cash Liabilities loan capital capital capital
Balance 70,000 595,000 200,000 45,000 35,000 105,000 280,000
Realization and dist of loss 245,000 (595,000) (70,000) (105,000) (175,000)
Balance 315,000 - 200,000 45,000 (35,000) - 105,000
Payment of liabilities (200,000) (200,000)
Balance 115,000 - - 45,000 (35,000) - 105,000
Right of offset (35,000) 35,000
Balance 115,000 - - 10,000 - - 105,000
payment to partner (115,000.00) (10,000) (105,000)

2. S I I
20% 30% 50%
Non- Boy, Boy, Coy, Doy,
Cash Cash Liabilities loan capital capital capital
Balance 70,000 595,000 200,000 45,000 35,000 105,000 280,000
Realization and dist of loss 171,500 (595,000) (84,700) (127,050) (211,750)
payment of liq. Exp. (17,500) (3,500) (5,250) (8,750)
Balance 224,000 - 200,000 45,000 (53,200) (27,300) 59,500
Payment of liabilities (200,000) (200,000)
Balance 24,000 - - 45,000 (53,200) (27,300) 59,500
Right of offset (45,000) 45,000
 Balance 24,000 - - - (8,200) (27,300) 59,500
Additional loss to Boy and Doy (7,800) 27,300 (19,500)
Balance 24,000.00 - - (16,000) - 40,000
Additional investment of Boy 16,000.00 16,000
Balance 40,000.00 - - - - - 40,000.00
payment to partner (40,000.00) (40,000)

I S S
20% 30% 50%
Non- Boy, Boy, Coy, Doy,
3. Cash Cash Liabilities loan capital capital capital
Balance 70,000 595,000 200,000 45,000 35,000 105,000 280,000
Realization and dist of loss 126,000 (595,000) (93,800) (140,700) (234,500)
Balance 196,000 - 200,000 45,000 (58,800) (35,700) 45,500
Payment of liabilities (196,000) (196,000)
Balance - - 4,000 45,000 (58,800) (35,700) 45,500
Right of offset (45,000) 45,000
Balance - - 4,000 - (13,800) (35,700) 45,500
Additional loss to Coy and Doy 13,800 (5,175) (8,625)
Balance - - 4,000 - - (40,875) 36,875
Additional investment of Coy 40,875 - 40,875
Balance 40,875 - 4,000 - - - 36,875
Payment of liabilities (4,000) (4,000)
Balance 36,875 - - - - - 36,875
payment to partner (36,875) (36,875)

Problem 8 50% 30% 20%

Dave, Ryan, Dave, Byron,
1. Cash Non-Cash Liabilities loan capital capital capital
Balance 220,000 1,485,000 330,000 110,000 880,000 396,000 154,000
Receivable from Ryan (165,000)
Balance beforeliquidation 220,000 1,485,000 330,000 110,000 715,000 396,000 154,000
Realization and dist of loss 1,045,000 (1,485,000) (220,000) (132,000) (88,000)
Balance 1,265,000 - 330,000 110,000 495,000 264,000 66,000
Payment of liabilites (330,000) (330,000)
Balance 935,000 - - 110,000 495,000 264,000 66,000
Payment to partners (935,000) (110,000) (495,000) (264,000) (66,000.00)

2. Journal Entries
a. Ryan, capital 165,000
Receivable from Ryan 165,000

b. Cash 1,045,000
Ryan, capital 220,000
Dave, capital 132,000
Byron, capital 88,000
NCA 1,485,000

c. Liabilities 330,000
Cash 330,000

d. Dave, loan 110,000

Ryan, capital 495,000
Dave, capital 264,000
Byron, capital 66,000
Cash 935,000
Problem 9
Case 1 80% 20%
Other Vivas, Briones, Vivas, Briones,
Cash Assets Liabilities loan loan capital capital
Balance before liq. 100,000 1,000,000 660,000 90,000 100,000 200,000 50,000
Realization and dist of loss 134,000 (1,000,000) (692,800) (173,200)
Balance 234,000 - 660,000 90,000 100,000 (492,800) (123,200)
Payment of liabilities (234,000) (234,000)
Balance - - 426,000 90,000 100,000 (492,800) (123,200)
Right of offset (90,000) (100,000) 90,000 100,000
Balance - - 426,000 - - (402,800) (23,200)
Additional Investment of
partners 426,000 402,800 23,200
Balance 426,000 - 426,000 - - - -
Payment of liabilities (426,000) (426,000) - - - -

Journal Entries
a. Cash 134,000
Vivas, capital 692,800
Briones, capital 173,200
Other Assets 1,000,000

b. Liabilities 234,000
Cash 234,000

c. Vivas, loan 90,000

Briones, loan 100,000
Vivas, capital 90,000
Briones, capital 100,000

d. Cash 426,000
Vivas, capital 402,800
Briones, capital 23,200

e. Liabilities 426,000
Cash 426,000
Case 2
Other Vivas, Briones, Vivas, Briones,
Cash Assets Liabilities loan loan capital capital
Balance before liq. 100,000 1,000,000 660,000 90,000 100,000 200,000 50,000
Realization and dist of loss 134,000 (1,000,000) (519,600) (346,400)
Balance 234,000 - 660,000 90,000 100,000 (319,600) (296,400)
Payment of liabilities (234,000) (234,000)
Balance - - 426,000 90,000 100,000 (319,600) (296,400)
Right of offset (90,000) (100,000) 90,000 100,000
Balance - - 426,000 - - (229,600) (196,400)
Additional Investment of
partners 426,000 229,600 196,400
Balance 426,000 - 426,000 - - - -
Payment of liabilities (426,000) (426,000) - - - -

Journal Entries
a. Cash 134,000
Vivas, capital 519,600
Briones, capital 346,400
 Other Assets 1,000,000

b. Liabilities 234,000
Cash 234,000

c. Vivas, loan 90,000

Briones, loan 100,000
Vivas, capital 90,000
Briones, capital 100,000

d. Cash 426,000
Vivas, capital 229,600
Briones, capital 196,400

e. Liabilities 426,000
Cash 426,000

50% 50%
Other Vivas, Briones, Vivas, Briones,
Case 3 Cash Assets Liabilities loan loan capital capital
Balance before liq. 100,000 1,000,000 660,000 90,000 100,000 200,000 50,000
Realization and dist of loss 134,000 (1,000,000) (433,000) (433,000)
Balance 234,000 - 660,000 90,000 100,000 (233,000) (383,000)
Payment of liabilities (234,000) (234,000)
Balance - - 426,000 90,000 100,000 (233,000) (383,000)
Right of offset (90,000) (100,000) 90,000 100,000
Balance - - 426,000 - - (143,000) (283,000)
Additional Investment of
partners 426,000 143,000 283,000
Balance 426,000 - 426,000 - - - -
Payment of liabilities (426,000) (426,000) - - - -
Jounal Entries
a. Cash 134,000
Vivas, capital 433,000
Briones, capital 433,000
Other Assets 1,000,000

b. Liabilities 234,000
Cash 234,000

c. Vivas, loan 90,000

Briones, loan 100,000
Vivas, capital 90,000
Briones, capital 100,000
d. Cash 426,000
Vivas, capital 143,000
Briones, capital 283,000

e. Liabilities 426,000
Cash 426,000

Problem 10
1. Oh Lee Kim
Balance 1,800,000 (720,000) 1,080,000
Additional loss to Oh and Kim (360,000) 720,000 (360,000)
Balance 1,440,000 - 720,000
Payment (1,440,000) (720,000)

2. Oh Lee Kim
Balance 1,800,000 (720,000) 1,080,000
Additional Investment of Lee 720,000
Balance 1,800,000 - 1,080,000
Payment (1,800,000) (1,080,000)

3. Oh Lee Kim
Balance 1,800,000 (720,000) 1,080,000
Additional Investment of Lee 432,000
Balance 1,800,000 (288,000) 1,080,000
Additional loss of Oh and Kim (144,000) 288,000 (144,000)
Balance 1,656,000 - 936,000
Payment (1,656,000) (936,000)

Problem 11
A 20% U 10% B 10% R 10% I 20% O 10% N 20%
Capital (54,000) 20,000 (66,000) (12,000) 35,000 10,000 (40,000)
Loss to be absorbed 54,000 (32,000) 66,000 (32,000) (64,000) (32,000) 40,000
Balance - (12,000) - (44,000) (29,000) (22,000) -
Additional
investment 12,000 44,000 29,000 22,000

Problem 12
60% 40%
Ivan Sofia
Capital 24,500 15,500
Loans 4,000 3,500
Interest 28,500 19,000 47,500
Loss absorb by partners (23,100) (15,400) (38,500)
Payment to partners 5,400 3,600 9,000

Total Cash afetr relaization 37,500

Payment of outside liab (36K - 7.5K) 28,500
Available cash to partners 9,000

Problem 13
 Lay May
Capital 475,000 900,000
Salary 25,000
Loan (75,000)
Interest 500,000 825,000 1,325,000
Total loss (490,000) (735,000) (1,225,000)
Available Cash P100,000 10,000 90,000 100,000

Problem 14
Answer
Z Y X
Capital 600,000 390,000 270,000
Loan
Interest 600,000 390,000 270,000
Total loss P600,000 (300,000) (180,000) (120,000)
300,000 210,000 150,000

b. If the other assets are sold for P240,000 and all partners are personally insolvent,
Z Y X
Capital 600,000 390,000 270,000
Loan
Interest 600,000 390,000 270,000
Total loss P600,000 (600,000) (360,000) (240,000)
- 30,000 30,000
Problem 15
Cash Liabilities A B C
Balances 20,000 30,000 10,000 (5,000) (15,000)
Payment of Liabilities (20,000) (20,000)
Balances - 10,000 10,000 (5,000) (15,000)
Additional Investment of B and C 12,000 2000 10,000
Balances 12,000 10,000 10,000 (3,000) (5,000)
Payment of Liabilities (10,000) (10,000)
Balances 2,000 - 10,000 (3,000) (5,000)
Additional loss to A (8,000) 3000 5000
Balances 2,000 - 2,000 - -
Payment to partner A (2,000) (2,000)

Problem 16
Other
a. Cash assets Liabilities A C
Beg. Balance 50,000 1,200,000 250,000 450,000 550,000
Realization of other assets and dist of loss 700,000 (1,200,000) (225,000) (275,000)
Balances 750,000 - 250,000 225,000 275,000
Payment of liabilities (250,000) (250,000)
Balances 500,000 - - 225,000 275,000
Payment to partners (500,000) (225,000) (275,000)

Other
b. . Cash assets Liabilities A C
Beg. Balance 50,000 1,200,000 250,000 450,000 550,000
Realization of other assets and dist of loss 300,000 (1,200,000) (405,000) (495,000)
Balances 350,000 - 250,000 45,000 55,000
Payment of liabilities (250,000) (250,000)
Balances 100,000 - - 45,000 55,000
Payment to partners (100,000) (45,000) (55,000)
 Other
c. Cash assets Liabilities A C
Beg. Balance 50,000 1,200,000 250,000 450,000 550,000
Realization of other assets and dist of loss 100,000 (1,200,000) (495,000) (605,000)
Balances 150,000 - 250,000 (45,000) (55,000)
Payment of liabilities (150,000) (150,000)
Balances - - 100,000 (45,000) (55,000)
Additional loss to C 45,000 (45,000)
Balances - - 100,000 - (100,000)
Additional investment of C 100,000 100,000
Balances 100,000 - 100,000 - -
Payment of liabilities (100,000) (100,000)

Problem 17
Cash Non-Cash Liabilities D, loan A B C D
Balance 125,000 2,375,000 1,125,000 93,750 953,125 234,375 125,000 125,000
Receivable from A (156,250)
Balance before
liquidation 125,000 2,375,000 1,125,000 93,750 796,875 234,375 125,000 125,000
Realization and
dist. of loss 1,250,000 (2,375,000) (562,500) (281,250) (140,625) (140,625)
Bal ance 1,375,000 - 1,125,000 93,750 234,375 (46,875) (15,625) (15,625)
P ayment of
liabilities (1,125,000) (1,125,000)
Bal ance 250,000 - - 93,750 234,375 (46,875) (15,625) (15,625)
Additional loss to
A, C and D (31,250) 46,875 (7,812.50) (7,812.50)
Bal ance 250,000 - - 93,750 203,125 - (23,437.50) (23,437.50)
Right of offset (23,437.50) 23,437.50
Bal ance 250,000 - - 70,312.50 203,125 - (23,437.50) -
Additional
Investment of C 23,437.50 23,437.50
Bal ance 273,437.50 - - 70,312.50 203,125 - - -
P ayment to partner (273,437.50) 70,312.50 203,125

Problem 18
1. Cash NCA Liabilities A,loan A, cap B ,cap C, cap
Balance before liquidation 10,000 240,000 60,000 5,000 20,000 75,000 90,000
Realization and Distribution of loss 100,000 (240,000) (56,000) (56,000) (28,000)
Payment of liquidation expenses (12,000) (4,800) (4,800) (2,400)
Payment of liabilities (60,000) (60,000)
Balance 38,000 - - 5,000 (40,800) 14,200 59,600
Additional loss of B and C 40,800 (27,200) (13,600)
Balance 38,000 - - 5,000 - (13,000) 46,000
Additional investment of B 13,000 13,000
Balance 51,000 - - 5,000 - - 46,000
Payment to partners (51,000) -5000 (46,000)

2.
Cash NCA Liabilities A,loan A,cap B,cap C, cap
Balance before liquidation 10,000 240,000 60,000 5,000 20,000 75,000 90,000
Realization and Distribution of loss 100,000 (240,000) (56,000) (56,000) (28,000)
Payment of liquidation expenses (12,000) (4,800) (4,800) (2,400)
Payment of liabilities (60,000) (60,000)
Balance 38,000 - - 5,000 (40,800) 14,200 59,600
Additional loss of B and C 40,800 (27,200) (13,600)
Balance 38,000 - - 5,000 - (13,000) 46,000
Additional loss of C 13,000 (13,000)
 Balance 38,000 - - 5,000 - - 33,000
Payment to partners (38,000) (5,000) (33,000)

Problem 19
1.
40% 40% 20%
Other Bea, Bea,
Cash Assets Liabilities loan Allen,capital Capital Clara,capital
Balance before
liquidation 6,000 94,000 20,000 4,000 39,000 27,000 10,000
Realization and Dist
of loss 28,000 (94,000) (26,400) (26,400) (13,200)
Payment of liabilities (21,000) (20,000) (400) (400) (200)
Balance 13,000 - - 4,000 12,200 200 (3,400)
Additional loss to
Allen and Bea (1,700) (1,700) 3,400
Balance 13,000 - - 4,000 10,500 (1,500) -
Right of offset (1,500) 1,500
Balance 13,000 - - 2,500 10,500 - -
Payment to partners (13,000) (2,500) (10,500)

2.
40% 40% 20%
Other Bea, Bea,
Cash Assets Liabilities loan Allen,capital Capital Clara,capital
Balance before liquidation 6,000 94,000 20,000 4,000 39,000 27,000 10,000
Realization and Dist of loss 28,000 (94,000) (26,400) (26,400) (13,200)
Payment of liabilities (21,000) (20,000) (400) (400) (200)
Balance 13,000 - - 4,000 12,200 200 (3,400)
Additional loss to Allen and
Bea (3,200) (200) 3,400
Balance 13,000 - - 4,000 9,000 - -
Payment to partners (13,000) (4,000) (9,000) - -

Problem 20
1. X Y Z
Capital balances before liquidation P49,000 P18,000 P10,000
Net Operating Loss, P21,000 ( 3,500) ( 7,000) ( 10,500)
Drawings ( 10,000) ( 15,000) ( 20,000)
Loans – 8,000 25,000
Loss on realization, P12,000 ( 2,000) ( 4,000) ( 6,000)
Balances P33,500 P – ( 1,500)
Absorption of Z's deficiency __1,500 _____– _1,500
Payment to Nora P32,000 P – P –

2. X Y Z
Capital balances before liquidation P49,000 P18,000 P10,000
Net Operating Loss, P21,000 ( 3,500) ( 7,000) ( 10,500)
Drawings ( 10,000) ( 15,000) ( 20,000)
Loans – 8,000 25,000
Loss on realization, P12,000 ( 2,000) ( 4,000) ( 6,000)
Balances P33,500 P – ( 1,500)
Additional investment of Z -__ _____– _1,500
Payment to Nora P33,500 P – P –