1.

Capital balances of partners after exhausting their non-cash assets are as follows…:- 22,000

2. A,B and C are partners in a business liquidated. The partnership has cash of P22,000, noncash assets with
a book value of P264,000 and liabilities of …-8,800

3. After a long dispute, Chris, Ann and Nine decided to liquidate their partnership. Their total interests as
of January…- 410,625 362,500

4. Which statement is correct in describing the rank order of payments?- Payments to other creditors are
ranked ahead of payments to partner with loans to the partnership

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5. JFK partnership engaged in steel manufacturing business had the following condensed financial position

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prior to liquidation…-320,000

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6. Partners A, B, C and D have been operating ABCD Partnership for ten years. Due to a significant
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reduction in the demand for their product over recent years, the partners have agreed to liquidate the
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partnership-

 30,750 none

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398,000 386,000
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7. The partnership of AB, BC and CD were dissolved on May 31, 20x3, and the account balances after all
noncash assets are converted to cash on July 01, 20x3 along with residual P/L ratio- 414, 750
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8. V,F, and H are partners who share profits and losses as follows V: 35%, F:25%...-68,700

9. Partners Sasha, Hally and Jane- 0

10. If conditions produce a debit balance in a partner’s capital account when liquidation losses are allocated-
The partner has an obligation of personal net assets to the other partners
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11. On December 31, 20x8, the statement of financial position of ABC partnership with profit or loss ratio
of 6:1:3 of partners A,B and C..-

 B-290,000 250,000
 C-270,000 150,000

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 12. In a simple partnership liquidation, the last remaining cash distribution should be made according to the
ratio of- The individual partner’s profit and loss agreement

13. SCA partnership has the following account balances before liquidation- 2,130,000

14. On January 1, 20x7, the partners Selya, Tessa and Ursula, who share profits and losses- 13,500; 45,900
; 39,600

15. Partners A, B and C share profits and losses in the ratio of 5:3:2. At the end of a very unprofitable year,
they decided to liquidate the…- 22,400

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16. On September 21 20x8, Tina, Donna and Gina formed a partnership investing cash of 189,000…-

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61,236

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17. The partnership of ABC, DEF and GHI became insolvent on December 31, 20x2 and is to be
liquidated…- 161,000
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18. A partnership dissolution differs from liquidation in that – payments are made to creditors before
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partners receive value.

19. A balance sheet for the partnership of Susan, Myrna and May…-237,600
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20. If all partners are included in the first installment of an installment liquidation, then in future
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installments- cash will be distributed according to the residual profit and loss sharing ratio
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21. A simple partnership liquidation requires-

partnership assets to be converted into cash with full payment made to all outside
creditors before remaining cash is distributed to partners in a lump sum payment.
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22. Asser, Jing and Tony are in the process of liquidating their partnership…-8,000 to Jing only

23. A partnership in liquidation has converted all assets into cash and paid all liabilities. The order of
payment- will have amounts owed by partners other than for capital and profits take precedence over
amounts due to partners with respect to their capital accounts

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 24. J, A and C are partners who share profits and losses as follows…-20,258

25. In assumed loss absortion- the most vulnerable partner is eliminated first
26. The Walker, Wilson and Winston…-

 Winston, Walker, Wilson

27. AZ, BY and CX are partners..-52, 800

28. On December 31, 20x9, the statement of financial position of XYZ partnership-

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z-240,000

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 y-165,000

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 withheld-1,750,000

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29. Which of the following procedure is acceptable when accounting for deficit balance in a partners capital
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account during liquidation- apply to those partners having positive balances
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30. In partnership liquidation, what are safe payments?- the amounts of distribution that can be made to
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the partners with assurance that such amounts will not have to be returned in the partnership
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