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Accounting 8

The partners Zee and Dee were incapacitated in an accident. A liquidator was appointed to wind up their business, which had cash of P70,000, other assets of P220,000, liabilities of P40,000, Zee's capital of P142,000, and Dee's capital of P108,000. The liquidator expected selling the other assets would take time due to their specialized nature, and liquidating costs were estimated to be P20,000.

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Ma. Alexandra Teddy Buen
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45 views1 page

Accounting 8

The partners Zee and Dee were incapacitated in an accident. A liquidator was appointed to wind up their business, which had cash of P70,000, other assets of P220,000, liabilities of P40,000, Zee's capital of P142,000, and Dee's capital of P108,000. The liquidator expected selling the other assets would take time due to their specialized nature, and liquidating costs were estimated to be P20,000.

Uploaded by

Ma. Alexandra Teddy Buen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Problem 7:

When Zee and Dee, partners who share earnings equally, were incapacitated in an airplane accident, a
liquidator was appointed to wind up their business. The accounts showed cash, P 70,000; other assets,
P 220,000; liabilities, P 40,000; Zee’s capital, P 142,000; and Dee’s capital, P 108,000. Because of the
highly specialized nature of the non cash assets, the liquidator anticipated that considerable time would
be required to dispose them. The expenses of liquidating the business are estimated at P 20,000.

Questions to answer:
1. If Zee’s guardian, since Zee is incapacitated, received Zee’s share of P 39,625 from the first
distribution of cash, How much cash was realized from the initial sale of assets?
2. Using the information in # 19, What is the balance of Dee’s capital after the first distribution of
cash?

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