[Type text]
Partnerships: Liquidation
f
MultiplefChoicefQuestions
1.fThefcapitalfbalances,fpriorftofthefliquidationfoffthefXYZfpartnership,fwerefasffollows:
X,fY,fandfZfsharefprofitsfandflossesfinfthefratiofoff5:3:2.fAsfafresultfoffafloan,fthefpartnershipfowesf
YfP80,000.fUsingfthefinformationfabove,fwhichfpartnerfhasfthefhighestfLossfAbsorptionfPowerf(
LAP)fpriorftofliquidation?
A.fXf
B.fYf
C.fZ
D.fBothfXfandfY
2.fThefbalancefsheetfgivenfbelowfisfpresentedfforfthefpartnershipfoffJanet,fAnton,fandfMillet:
Thefpartnersfsharefprofitsfandflossesfinfthefratiofoff5:3:2,frespectively.fThefpartnersfagreedftofdiss
olvefthefpartnershipfafterfsellingfthefotherfassetsfforfP50,000.fOnfdissolutionfoffthefpartnership,fJ
anetfshouldfreceive:
A.fP0.
B.fP80,000.f
C.fP10,000.f
D.fP30,000.
16-1
,[Type text]
Chapterf16f-fPartnerships:fLiquidation
3.fOnfDecemberf1,f2009,fthefpartnersfoffTim,fWilliams,fandfLevin,fwhofsharefprofitsfandflossesfi
nfthefratiofoff4:4:2,fdecidedftofliquidateftheirfpartnership.fOnfthisfdatefthefpartnershipfcondensedf
balancefsheetfwasfasffollows:
OnfDecemberf11,f2009,ftheffirstfcashfsalefoffotherfassetsfwithfafcarryingfamountfoffP200,000freal
izedfP140,000.fSafefinstallmentfpaymentsftofthefpartnersfwerefmadefonfthefsamefdate.fHowfmuc
hfcashfshouldfbefdistributedftofeachfpartner?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
Tom,fDick,fandfHarryfarefpartnersfinfanfequipmentfleasingfbusinessfthatfhasfnotfbeenfableftofgene
rateftheftypefoffrevenuefexpectedfbyfthefpartners.fTheyfsharefprofitsfandflossesfinfafratiofoff5:3:2.f
Theyfhavefdecidedftofliquidatefthefbusinessfandfhavefsoldfallfthefassetsfexceptfforfonefpiecefoffhea
vyfmachinery.fAllfpartnershipfliabilitiesfhavefbeenfsettledfandfallfthefpartnersfarefpersonallyfinsol
vent.fThefmachineryfhasfafbookfvaluefoffP85,000,fandfthefpartnersfhavefcapitalfaccountfbalancesf
asffollows:
Eachfofftheffollowingfarefindependentfcases.
16-2
,[Type text]
Chapterf16f-fPartnerships:fLiquidation
4.fReferftofthefinformationfgivenfabove.fWhatfamountfoffcashfwillfeachfpartnerfreceivefasfafliqu
idatingfdistributionfiffthefmachineryfisfsoldfforf65,000fdollars?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
5.fReferftofthefinformationfgivenfabove.fWhatfamountfoffcashfwillfeachfpartnerfreceivefasfafliqu
idatingfdistributionfiffthefmachineryfisfsoldfforf33,000fdollars?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
6.fReferftofthefinformationfgivenfabove.fWhatfamountfoffcashfwillfeachfpartnerfreceivefasfafliqu
idatingfdistributionfiffthefmachineryfisfsoldfforf21,100fdollars?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
16-3
, [Type text]
Chapterf16f-fPartnerships:fLiquidation
PartnersfDennisfandfLillyfhavefdecidedftofliquidateftheirfbusiness.fTheffollowingfinformationfisfa
vailable:
DennisfandfLillyfsharefprofitsfandflossesfinfaf3:2fratio.fDuringftheffirstfmonthfoffliquidation,fhalffth
efinventoryfisfsoldfforfP60,000,fandfP60,000foffthefaccountsfpayablefisfpaid.fDuringfthefsecondfm
onth,fthefrestfoffthefinventoryfisfsoldfforfP45,000,fandfthefremainingfaccountsfpayablefarefpaid.fCa
shfisfdistributedfatfthefendfoffeachfmonth,fandfthefliquidationfis
completedfatfthefendfoffthefsecondfmonth.
7.fReferftofthefinformationfprovidedfabove.fUsingfafsafefpaymentsfschedule,fhowfmuchfcashfwill
fbefdistributedftofDennisfatfthefendfofftheffirstfmonth?
A.fP64,000
B.fP60,000
C.fP24,000
D.fP36,000
8.fReferftofthefinformationfprovidedfabove.fUsingfafsafefpaymentsfschedule,fhowfmuchfcashfwill
fbefdistributedftofLillyfatfthefendfofftheffirstfmonth?
A.fP24,000
B.fP40,000
C.fP16,000
D.fP64,000
9.fReferftofthefinformationfprovidedfabove.fUsingfafsafefpaymentsfschedule,fhowfmuchfcashfwill
fbefdistributedftofDennisfatfthefendfoffthefsecondfmonth?
A.fP18,000
B.fP27,000
C.fP36,000
D.fP60,000
16-4
Partnerships: Liquidation
f
MultiplefChoicefQuestions
1.fThefcapitalfbalances,fpriorftofthefliquidationfoffthefXYZfpartnership,fwerefasffollows:
X,fY,fandfZfsharefprofitsfandflossesfinfthefratiofoff5:3:2.fAsfafresultfoffafloan,fthefpartnershipfowesf
YfP80,000.fUsingfthefinformationfabove,fwhichfpartnerfhasfthefhighestfLossfAbsorptionfPowerf(
LAP)fpriorftofliquidation?
A.fXf
B.fYf
C.fZ
D.fBothfXfandfY
2.fThefbalancefsheetfgivenfbelowfisfpresentedfforfthefpartnershipfoffJanet,fAnton,fandfMillet:
Thefpartnersfsharefprofitsfandflossesfinfthefratiofoff5:3:2,frespectively.fThefpartnersfagreedftofdiss
olvefthefpartnershipfafterfsellingfthefotherfassetsfforfP50,000.fOnfdissolutionfoffthefpartnership,fJ
anetfshouldfreceive:
A.fP0.
B.fP80,000.f
C.fP10,000.f
D.fP30,000.
16-1
,[Type text]
Chapterf16f-fPartnerships:fLiquidation
3.fOnfDecemberf1,f2009,fthefpartnersfoffTim,fWilliams,fandfLevin,fwhofsharefprofitsfandflossesfi
nfthefratiofoff4:4:2,fdecidedftofliquidateftheirfpartnership.fOnfthisfdatefthefpartnershipfcondensedf
balancefsheetfwasfasffollows:
OnfDecemberf11,f2009,ftheffirstfcashfsalefoffotherfassetsfwithfafcarryingfamountfoffP200,000freal
izedfP140,000.fSafefinstallmentfpaymentsftofthefpartnersfwerefmadefonfthefsamefdate.fHowfmuc
hfcashfshouldfbefdistributedftofeachfpartner?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
Tom,fDick,fandfHarryfarefpartnersfinfanfequipmentfleasingfbusinessfthatfhasfnotfbeenfableftofgene
rateftheftypefoffrevenuefexpectedfbyfthefpartners.fTheyfsharefprofitsfandflossesfinfafratiofoff5:3:2.f
Theyfhavefdecidedftofliquidatefthefbusinessfandfhavefsoldfallfthefassetsfexceptfforfonefpiecefoffhea
vyfmachinery.fAllfpartnershipfliabilitiesfhavefbeenfsettledfandfallfthefpartnersfarefpersonallyfinsol
vent.fThefmachineryfhasfafbookfvaluefoffP85,000,fandfthefpartnersfhavefcapitalfaccountfbalancesf
asffollows:
Eachfofftheffollowingfarefindependentfcases.
16-2
,[Type text]
Chapterf16f-fPartnerships:fLiquidation
4.fReferftofthefinformationfgivenfabove.fWhatfamountfoffcashfwillfeachfpartnerfreceivefasfafliqu
idatingfdistributionfiffthefmachineryfisfsoldfforf65,000fdollars?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
5.fReferftofthefinformationfgivenfabove.fWhatfamountfoffcashfwillfeachfpartnerfreceivefasfafliqu
idatingfdistributionfiffthefmachineryfisfsoldfforf33,000fdollars?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
6.fReferftofthefinformationfgivenfabove.fWhatfamountfoffcashfwillfeachfpartnerfreceivefasfafliqu
idatingfdistributionfiffthefmachineryfisfsoldfforf21,100fdollars?
A.fOptionfAf
B.fOptionfBf
C.fOptionfCf
D.fOptionfD
16-3
, [Type text]
Chapterf16f-fPartnerships:fLiquidation
PartnersfDennisfandfLillyfhavefdecidedftofliquidateftheirfbusiness.fTheffollowingfinformationfisfa
vailable:
DennisfandfLillyfsharefprofitsfandflossesfinfaf3:2fratio.fDuringftheffirstfmonthfoffliquidation,fhalffth
efinventoryfisfsoldfforfP60,000,fandfP60,000foffthefaccountsfpayablefisfpaid.fDuringfthefsecondfm
onth,fthefrestfoffthefinventoryfisfsoldfforfP45,000,fandfthefremainingfaccountsfpayablefarefpaid.fCa
shfisfdistributedfatfthefendfoffeachfmonth,fandfthefliquidationfis
completedfatfthefendfoffthefsecondfmonth.
7.fReferftofthefinformationfprovidedfabove.fUsingfafsafefpaymentsfschedule,fhowfmuchfcashfwill
fbefdistributedftofDennisfatfthefendfofftheffirstfmonth?
A.fP64,000
B.fP60,000
C.fP24,000
D.fP36,000
8.fReferftofthefinformationfprovidedfabove.fUsingfafsafefpaymentsfschedule,fhowfmuchfcashfwill
fbefdistributedftofLillyfatfthefendfofftheffirstfmonth?
A.fP24,000
B.fP40,000
C.fP16,000
D.fP64,000
9.fReferftofthefinformationfprovidedfabove.fUsingfafsafefpaymentsfschedule,fhowfmuchfcashfwill
fbefdistributedftofDennisfatfthefendfoffthefsecondfmonth?
A.fP18,000
B.fP27,000
C.fP36,000
D.fP60,000
16-4
