CFAS Sample Problems
CFAS Sample Problems
CFAS Sample Problems
EVALUATION: LIQUIDATION
1. Cindy, Rolly and Willy are partners who share profits and losses in the ratio of 5:3:2,
respectively. Just before the partners decided to liquidate, its financial position is as follows:
#9
Cash P 300,000 Acc. Pay. P 210,000
Other Assets (net) 800,000 Cindy, Loan 50,000
Cindy, Cap. 150,000
Rolly, Cap. 250,000
________ Willy, Cap. 440,000
P1,100,000 P1,100,000
2. SOL Resort is a partnership wherein the partners decided to liquidate in March 1, 2020.
#7
Assets Liabilities & Owner’s Equity
Cash P 10,000 Liabilities P 90,000
Other Assets 190,000 Loan due to Opal 10,000
Sidro, Cap. 55,000
Opal, Cap. 25,000
__ Lorie, Cap. 20,000
Total P200,000 Total P200,000
P/L is distributed equally. The other assets were sold for P100,000. Their personal assets and
liabilities are as follows: Sidro- P75,000 (50,000); Opal-P80,000 (120,000); Lorie-55,000 (50,000)
Direction: Prepare a St. of Part. Liq. with supporting journal entries. Deficient partners pay
depending on personal financial status.
SOL PARTNERSHIP
Statement of Partnership Liquidation
March 1, 2020
Balances before liq. P 10,000 P190,000 P 90,000 P10,000 P55,000 P25,000 P20,000
1. OA sold at a loss 100,000 (190,000) (30,000) (30,000) (30,000)
Balances after sale 110,000 - 90,000 10,000 25,000 (5,000) (10,000)
2. Liabilities paid ( 90,000) - (90,000)________________________________
Balances after payment 20,000 - - 10,000 25,000 (5,000) (10,000)
3. Right of Offset ( 5,000) ________5,000_________
Bal. after right of offset 20,000 - - 5,000 25,000 - (10,000)
4. Addl. Inv. by Lorrie 5,000 5,000
Bal. after addl. Inv. 25,000 - - 5,000 25,000 - (5,000)
5. Abs. by Sidro ( 5,000) 5,000
Bal. after abs. 25,000 - - 5,000 20,000 - -
4.Payment of loan (5,000) (5,000) ______________________
Bal after pay. Of loan 20,000 - - - 20,000 - -
5. Partners paid ( 20,000) - - - (20,000)_______________
0 0 0 0 0 0 0
3. The Leisure Resort, a health spa, decided to dissolve the partnership when its financial
position showed the ffg: #14
Debit Credit
Cash P 40,000
Other Assets 210,000
Acc. Pay. P 60,000
Kuok, Cap. 48,000
Tong, Cap. 72,000
Lau, Cap. 70,000
P250,000 P250,000
P/L sharing ratio is 5:3:2 respectively. The partnership will be liquidated over an estimated
period of three months. As the assets are realized and liabilities liquidated, distribution will be
made to the partners as soon as there is cash available.
Kuok was the only solvent partner. The ffg. are the activities for the month of June.
Sale of NCA having a book value of P120,000 for P 90,000 less P2,000 liquidation expenses. ½ of
the liabilities were paid. Cash withheld for future liquidation proceedings was estimated at
P3,000.
4. To continue with #3, the ffg. Transactions took place for July and August:
July – Sale of half of the remaining other assets at a loss of P8,000.
Liquidation exp. Were paid, P2,000.
Remaining liabilities were paid.
Partners were paid with the cash available except for P2,000 reserved for future liq. exp.
Direction: Using the June 30 balances of the St. of Liq. in #3, prepare a St of Liq. for July and
August. Support with a Schedule
5. Using the same information:
a. prepare a priority program
b. prepare 2 schedules of safe payment for the months of June and July using the
priority program assuming that the cash available for distribution are P65,000 and P36,000,
respectively.
Alternative Schedules:
Schedule 1) Cash balance P40,000
Add Proceeds net of liq exp 88,000
Total 128,000
Less: Restricted interest 63,000
Cash available to partners P65,000
Schedule 1) K T L
a. Capital balances 32,000 62,400 63,600
Possible loss if non-
cash assets of P90,000
will not be sold + 3,000 (46,500) (27,900) (18,600)
Balances P(14,500) P34,500 P45,000
Possible loss of 14,500 14,500 (8,700) ( 5,800)
Free Interest P25,800 P39,200
Schedule 2)
K T L
Balances 27,000 33,600 22,400
Possible loss of 47,000 (23,500) (14,100) (9,400)
Free Interest P 3,500 P 19,500 P 13,000
94,000
Further cash distribution to all based on
P and L ratio.