Chapter 4 Answer Keys Mas by Roque

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68Chapter 4

CHAPTER 4

MULTIPLE CHOICE ANSWERS AND SOLUTIONS

4-1: a
PARBOOGIEBIRDIE
Capital balances before realizationP 20,000P 16,000P 10,000
Loss on liquidation, P40,000(  20,000)(  12,000)(   8,000)
Cash distributionP       –P   4,000P   2,000

4-2: c
PINGPANGPONG
Capital balances before liquidationP 50,000P 50,000P 10,000
Gain of P10,000 (150,000-140,000)__6,000__2,000__2,000
Cash distributionP 56,000P 52,000P 12,000

4-3: b
PINGPANGPONG
Capital balances before liquidationP 50,000P 50,000P 10,000
Loss of P40,000 (P140,000-P100,000)(  24,000)(   8,000)(   8,000)
Cash distributionP 26,000P 42,000P   2,000

4-4: a
PINGPANGPONG
Capital balances before liquidationP 50,000P 50,000P 10,000
Loss of P70,000 (P140,000-P70,000)(  42,000)(  14,000)(  14,000)
BalancesP8,000P 36,000(   4,000)
Absorption of Pong's deficiency, 6:2(   3,000)(   1,000)__4,000
Cash distributionP   5,000P 35,000

4-5: b
COLTMARKCLOCK
Capital balances before liquidation (net of loans)P290,000P200,000P220,000
Loss of P130,000, 4:3:3(  52,000)(  39,000)(  39,000)
Cash distributionP238,000P161,000P181,000

4-6: c
JONASCARLOSTOMAS
Capital balances before liquidationP160,000P 45,000P 55,000
Loss of P60,000, 40:50:10(  24,000)(  20,000)(   6,000)
Cash distributionP136,000P 25,000P 49,000

Partnership Liquidation69

4-7: a
ARIELBERTCESAR
Capital balances before liquidationP40,000P180,000P 30,000
Loss of P100,000, 4:3:3( 40,000)(  30,000)(  30,000)
Cash distributionP      –P150,000P       –

4-8: b
NORYOSCAR
Capital balances before realizationP23,000P 13,500
Additional investment by Nory for
the unpaid liabilities (33,000-18,000)15,000
Loss on realization (schedule 1)( 30,900)(  20,600)
Payment by Oscar to NoryP  7,100(  P7,100)
Schedule 1
Total capital before liquidationP 36,500
Unpaid liabilities15,000
Total loss on realizationP 51,500

4-9: d
BLACKWHITEGREEN
Capital balances before liquidation (net)P99,000P 91,500P138,000
Loss on realization (schedule 1) P27,500( 13,750)(  27,500)_(   5,500)
Balances, cash distributionP85,250P 64,000P132,500

Schedule 1:
Capital balances of white (net)P 91,500
Cash received by White_83,250
White's share of total loss (30%)P   8,250

Total loss on realization (P8,250/39%)P 27,500

4-10: c
ANAEVANORA
Capital balances before liquidation (net)P27,000P 43,000P 10,000
Loss on realization, P63,600( 25,320)(  25,320)(  12,660)
BalancesP 1,680P 17,680(   2,660)
Unrecorded liabilities, P500(    200)(     200)(     100)
BalancesP 1,480P 17,480(   2,760)
Elimination of Nora's deficiency(  1,380)(   1,380)__2,760
Payment to partnersP    100P 16,100P       –

4-11: d
ARIESLEOTAURUS
Capital balances before liquidation (net)P33,500P 49,000P 36,500
Loss on realization (schedule 1) P45,000( 22,500)(  13,500)(   9,000)
Payment to partnersP11,000P 35,500P 27,500
70Chapter 4

Schedule 1:
Taurus capital (net)P36,500
Payment to Taurus( 27,500)
Share of total loss (20%)P  9,000

Total loss on realization (9,000/20%)P45,000

4-12: c
TOTALMONANORAOLGA
Capital balances, June 11P32,700P15,000P13,500P 4,200
Net loss from operation (squeeze)(  9,800)(  4,200)(  2,800)(  2,800)
Capital balances, August 30 before
liquidation (48,500-25,600)P22,900P10,800P10,700P 1,400
Loss on realization (47,500-30,000)( 17,500)(  7,500)(  5,000)(  5,000)
BalancesP 5,400P 3,300P 5,700(  3,600)
Additional investment by Olga_1,500_____–_____–_1,500
BalancesP 6,900P 3,300P 5,700(  2,100)
Elimination of Olga's deficiency______(  1,260)(    840)_2,100
Payment...
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