Simeon and Levi decided to liquidate their partnership business on June 1, 2017, under lump-sum liquidation. The partners had been sharing profits and losses on a 60:40 ratio. The statement of financial position prepared on the day of liquidation began was as follows: Assets Liabilities and Capital Accounts payable Simeon, loan Simeon, capital Levi, capital Levi, drawing P 18,000 P 249,000 Cash P 42,000 Non-cash assets 24,000 102,000 108,000 9,000 P267,000 Total P267,000 Total

Simeon and Levi decided to liquidate their partnership business on June 1, 2017, under lump-sum liquidation. The partners had been sharing profits and losses on a 60:40 ratio. The statement of financial position prepared on the day of liquidation began was as follows: Assets Liabilities and Capital Accounts payable Simeon, loan Simeon, capital Levi, capital Levi, drawing P 18,000 P 249,000 Cash P 42,000 Non-cash assets 24,000 102,000 108,000 9,000 P267,000 Total P267,000 Total

Name: During June, non-cash assets were sold at 120% of carrying value resul
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Description: During June, non-cash assets were sold at 120% of carrying value resulting to a gain on realization. How much is the share of Levi on the gain on realization of non-cash assets? P 49,800P24,900P 19,920P29,880 How much should Simeon and Levi receive

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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