Nama : Andito Yusuf Alkhafie NIM : 042011333243
Kelas : AKL II – L
TUGAS WEEK 10
E 17-2
SIMPLE LIQUIDATION
The partnership of Binh, Huyen, and Nguyen had profit- or loss-sharing ratio of 50%, 30%, and 20%, respectively. After operating for several years, Binh, Huyen, and Nguyen decided to liquidate their partnership. Information regarding thepartnership’s non cash assets is as follows:
REQUIRED : Prepare journal entries to record the sale of non-assets and the allocation of loss to the partners’ capital accounts.
ANSWER Sale of assets
Debit Credit
Cash $ 1,390,000
Loss on sale $ 160,000
Inventories $ 190,000
Equipment $ 560,000
Building $ 800,000
Allocation of loss to the partners' capital in profit - loss sharing ratio
Debit Credit
Capital - Binh $ 80,000
Capital - Huyen $ 48,000
Capital - Nguyen $ 32,000
Loss on sale $ 160,000
P 17-1
SAFE PAYMENT
Fahran, Boosah, and Delbar agree to liquidate their partnership as soon as possible, starting from January 31, 2014. They agree to retain $50,000 cash and distribute the rest at the end of each month. The trial balance at January 31, 2014, is as follows:
REQUIRED :
1. Prepare a schedule of safe payments to distribute any cash available on January 31, 2014.
2. Prepare the necessary journal entries for distributing the cash.
ANSWER
1. Schedule of Safe Payments January 31, 2014
Possible Losses Fahran Boosah Delbar
Partner Equity Balances $ 6 75,000 $ 695,000 $ 1, 390,000 Partner Loss on Noncash Assets $ 2,800,000 $ (840,000) $ (560,000) $ (1,400,000) $ (165,000) $ 135,000 $ (10,000) Possibles Loss on Contingencies
Cash Witheld $ 50,000 $ (15,000) $ (10,000) $ (25,000) $ (180,000) $ 125,000 $ (35,000) Possible Loss from Delbar $ (21,000) $ (14,000) $ 35,000 $ (201,000) $ 111,000 $ -
Possible Loss from Fahran $ 201,000 $ (201,000)
$ - $ (90,000) $ - 2. Journal for Distributing Cash
Cash $ 90,000
Boosah Capital $ 30,000
Loan to Boosah $ 120,000
