Afar
Afar
Afar
Traffic and Pollution are partners who have an agreement to share profit or
loss in the following manner:
Traffic Pollution
Traffic’s and Pollution’s average capital balances for the year ended
December 31, 2020 are P 600,000 and P 300,000, respectively.
QUESTIONS:
a. Assuming that the partnership generated a profit of P 900,000, how
much is the total share of Pollution in the net income for the year
ended 2020?
1. Chest and Legs are partners who share profits and losses in the ratio of
60:40, respectively. On January 1, 2020, their respective capital accounts
were as follows:
Chest P60,000
Legs P50,000
a.50,000
b.54,000
c.56,667
d.60,000
2. Back, Biceps and Abs were partners with capital balances on January 1,
2020 of P300,000, P200,000 and P100,000, respectively.
On July 1, 2020 Back retires from the partnership. On the date of retirement,
the partnership net loss is P60,000 and the partners agreed that certain
asset is to be revalued at P80,000 from its original cost of P50,000.
On June 12, 2013, assets with a book value of P82,500 were sold for
P55,000 cash. The proceeds were used to pay off liabilities of the
partnership. During the remainder of June, no additional assets were realized
and the outside creditors began to pressure the partnership for payment.
Corporate Liquidation
Compute the following:
Estimated deficiency to unsecured creditors