Question 7 Prior to the distribution of cash to the partners, the accounts in th
ID: 2418899 • Letter: Q
Question
Question 7
Prior to the distribution of cash to the partners, the accounts in the VUP Company are: Cash $26,900; Vogel Capital, (Cr.) $17,100; Utech, Capital (Cr.) $14,600; and Pena, Capital (Dr.) $4,800. The income ratios are 5 : 3 : 2, respectively.
No.
Account Titles and Explanation
Debit
Credit
(1)
(2)
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
(1)
(2)
Question 7
Prior to the distribution of cash to the partners, the accounts in the VUP Company are: Cash $26,900; Vogel Capital, (Cr.) $17,100; Utech, Capital (Cr.) $14,600; and Pena, Capital (Dr.) $4,800. The income ratios are 5 : 3 : 2, respectively.
Explanation / Answer
Solution-a
Date
Account Titles & Explanation
Debit
Credit
1.
Cash
$4,800
Pena’s, Capital
$4,800
2.
Vogel , Capital
$17,100
Utech, Capital
$14,600
Cash
$31,700
Calculation-
Cash
Vogel , Capital
Utech, Capital
Pena’s, Capital
Balance before the liquidation
$26,900
$(17,100)
$(14,600)
4,800
Pena’s, Payment
$4,800
$(4,800)
Balance
$31,700
$(17,100)
$(14,600)
---
Solution-b
Date
Account Titles & Explanation
Debit
Credit
1.
Vogel , Capital
$3,000
Utech, Capital
$1,800
Pena’s, Capital
$4,800
2.
Vogel , Capital
$14,100
Utech, Capital
$12,800
Cash
$26,900
Calculation-
Cash
Vogel , Capital
Utech, Capital
Pena’s, Capital
Balance before the liquidation
$26,900
$(17,100)
$(14,600)
4,800
Absorb Pena’s, deficiency
$3,000
$1,800
$(4,800)
Balance
$26,900
$(14,100)
$(12,800)
---
Date
Account Titles & Explanation
Debit
Credit
1.
Cash
$4,800
Pena’s, Capital
$4,800
2.
Vogel , Capital
$17,100
Utech, Capital
$14,600
Cash
$31,700
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