23. b
Ding Laurel Ezzard Tillman Total
Capital before realization 60,000 67,000 17,000
96,000 240,000
Loss on sale (4:2:2:2) (52,800) ( 26,400) (26,400)
(26,400) (132,000)
7,200 40,600 ( 9,400) 69,600 108,000
Possible insolvency loss (4:2:2) ( 4,700) ( 2,350)
( 9,400) ( 2,350) -0Safe payments 2,500 38,250 0 67,250 108,000
24. e – refer to No. 23
25. b
Gonda Herron Morse Total
Capital before realization 60,000 70,000 40,000
170,000
Loss on sale (30:45:25); [200 – 150] (15,000) ( 22,500)
(12,500) (50,000)
45,000 47,500 27,500 120,000
26. c
S D F Total
Capital 40,000 15,000 5,000 60,000
Loan ________ _______ 5,000 5,000
Total interests 40,000 15,000 10,000 65,000
Loss on sale (5:3:2) - [90,000 – 26,000] (32,000)
( 19,200) (12,800) (64,000)
8,000 ( 4,200) ( 2,800) 1,000
Possible insolvency (5:3) (1,750) ( 1,050) 2,800 0
6,250 ( 5,250) 1,000
Additional investment _______ 5,250 5,250
6,250 6,250
27. b
28. a –
Since the partnership currently has total capital of
P350,000, the P150,000 that is available
would indicate maximum potential losses of P200,000
that is hypothetically split among the
partners.
White Sands Luke Total
Capital before realization 50,000 100,000 200,000
350,000
Loss on sale (30:20:50); [350 – 150] (60,000) ( 40,000)
(100,000) (200,000)
(10,000) 60,000 100,000 150,000
Possible insolvency (2:5) 10,000 (2,857) (7,143) 0
Safe payments 57,143 92,857 150,000
29. b - (P13,000 – P1,000 share of gain = P12,000,
refer to entries below)
Revaluation entry:
Accumulated depreciation 3,000
Gym, capital 1,000
Hob, capital 1,000
Ing, capital 1,000
Withdrawal of equipment:
Accumulated depreciation (8,000 – 3,000) 5,000
Hob, capital 13,000
Equipment 18,000
30. b –