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Lumpsum Problem

The document contains 47 math word problems describing various partnership liquidation scenarios. The problems provide capital account balances for partners, profit/loss sharing ratios, cash/non-cash assets, liabilities, and amounts received by partners during liquidation. Readers are asked to calculate net capital positions, cash available for distribution, losses on asset sales, and amounts partners would receive based on the information given.

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Queenie Maglalang
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233 views

Lumpsum Problem

The document contains 47 math word problems describing various partnership liquidation scenarios. The problems provide capital account balances for partners, profit/loss sharing ratios, cash/non-cash assets, liabilities, and amounts received by partners during liquidation. Readers are asked to calculate net capital positions, cash available for distribution, losses on asset sales, and amounts partners would receive based on the information given.

Uploaded by

Queenie Maglalang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem 41: ·B utch, .Elen, Pit are partners ·in. i company that is being liquidated.

The three partners have capital balances of P210;00.0, P168,000 and P 162,000. In
addition,_the partnership previously loaned Pit P30,00O and Butch had loaned the
P~ership 'P60 ,000. Assuming the right of offs~t is applie1, what is the net capital
P0s1tion of the three partners when tlie liquidation begins, respectively?
a. 270,00o;· 168 000· 132 000 . c. 210,000; 168,000; 162,000
-h. 240,000; 16a:ooo; 102:000 . · d. 1so,ooo; 16s,ooo; 192,000
Problem 42: Magno, Butch and Monteza are partners who share profits and I~
in the ratio. of 2:3:5. The partners have decided to liquidate the partnership. 1beir
capital accounts show the foliowing balances; Magno 120,000; Butch ~180,000
and Monteza (P40,000) after the, sale of non-cash assets and the payment of
liabilities. What is the amount of cash available for distribution?
a. P120,000 c. P240,000
b. P180,000 . d. P260,000

Problem 43: A, B, C and D are partners, sharing earnings in the ratio of 3:4:6:8.
The balance of their capital accounts on December 31, 2020 are as follows:
A 3,000
B · 75,000
C 7-5,000
D .27,000

The partners decided to liquidate, and they accordingly ,convert the non-cash
assets into P69,600 of cash. After paying the liabilities amounting to P9,000, they
have P66,600 to divide. Assume that a debit balance in any partner's capital is
uncollectible. The book value of the non-cash assets·am ounted to:
a. P75,600 . c. Pl36,200
b. P183,000 d. _P189 ,000

The shate of B in the loss upon conversion of the non-cash assets into cash was
a. P21,600 . c. P183,000
b. P75,600 d . Pl6,200

Problem 44: The partnership of A, B and C is liquidated and the ledger shows the
following: - _ _ '

Cash . 80,000
Inventories 100,000
r'
A-ccounts payable 60,000
A, capital (50%) .,
40,000
B, capital (25%) 45,000
C, capital (25%) ·3s,ooo
·If all cash available is distributed ~ediately
a. 'A,B And C should get P26,667
b. A,B And C should get P6,667
, de.. A should get Pl0,000 and Band c' s·h ould get PS 000 ··· h
B should get PlS,000 and c J:>5,000 ·' eac
I •

Problem. . 45: The capital .balances of the partners· m


· A~'Z
I partners h 1p
' are Marl<
.
100,00?, ~om 62,500; Enc 1~,500. The partners' profit and loss ratio is 3:2:l,
respectively. The partners decided to liquidate the p artn ~rs h'1p. They sold all we
non-cas h assets fior 93,750 cash. After -settlement of all liabilities amounting t0
•30,00(?,. they still have 70,000 cash left for distribution. The loss on realization of
the non-cash assets:
a. Pl00,000 c. Pl 12,500
b: P70,000 d. 'PlOS,000

Assuming that any ?ebit balance· of partners' capital is uncollectible the share of
Mark on 70,000 cash for distribution is · '
a. P45,000 c. Pl00,000
· b. P47,500 · d. P44,500

Problem 46: Tite Batman, Superman and Wonder Woman partnership had the
following ba!an~e sheet just befor!! entering liquidation:
Cash 40,000 Liabilities _ 520,000
Noncash assets 1,200,000 Batman, capital 240,000
Superman, capital 160,000
Wonder Woman, capital 320,000
Total 1,240,000 Total 1,240,000

Batman, Superman and Wonder woman share profits and losses in a ratio of 2:4:4.
Noricash _assets - were s9ld for P720,000. Liquidation expenses were P40,000.
Assume that St.i~rman was personally ins9lvent and could not contribute any
assets to the partnership, while Batman and Wonder woman were both solvent.
· What amount of cash would Batman have received from the distribution of
partnership assets?
a. Pi52,000 c. P96,000
b. P120,000 . d. P136,000

Probiem 4T: The partnership account of_A, B and C who share profits and losses
. in the ratio of 3:3:4 are as follows: · · · ·

A, drawing (debit .balance) 90,000


C, drawing (credit balance) 30,000
B, loan 150,000
480,000
A, capi~
390,000
B, capital
420,000
C, capital
Total assets· amounted to P2,100,000, including P240,000 cash and ?abilities total
P720
" ,000 . The p artn · h'1p w· as liquidated in March
, ers . .•2020
. .and C received
. . P360,000
cash ~ayment in the liquidation. The loss ·o n realization is . .
a. P225 000 c. P240,000 -·
b. P3oo:ooo . d. p2ss,ooo

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