1. Done Partnership is undergoing liquidation. Information on Done is as follows: Cash Accounts receivable Receivable from A Inventory Equipment, net Total 20,000 Accounts payable 60,000 Payable to B 10,000 A, Capital (60%) 120,000 B, Capital (40%) 290,000 500,000 Total Liab. & Equity 30,000 20,000 250,000 200,000 500,000 Case 1: Lump-sum liquidation The non-cash assets were realized as follows: Only 70% of the accounts receivable was collected; the balance is uncollectible. b. P20,000 was received for the entire inventory. c. The equipment was sold for P310,000. d. P12,000 liquidation expenses were paid. Requirement: Compute for the cash distributions to the partners.
1. Done Partnership is undergoing liquidation. Information on Done is as follows: Cash Accounts receivable Receivable from A Inventory Equipment, net Total 20,000 Accounts payable 60,000 Payable to B 10,000 A, Capital (60%) 120,000 B, Capital (40%) 290,000 500,000 Total Liab. & Equity 30,000 20,000 250,000 200,000 500,000 Case 1: Lump-sum liquidation The non-cash assets were realized as follows: Only 70% of the accounts receivable was collected; the balance is uncollectible. b. P20,000 was received for the entire inventory. c. The equipment was sold for P310,000. d. P12,000 liquidation expenses were paid. Requirement: Compute for the cash distributions to the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Follow the instructions carefully.
Transcribed Image Text:Fact
1. Done Partnership is undergoing liquidation. Information on
Done is as follows:
Cash
Accounts receivable
Receivable from A
Inventory
Equipment, net
Total
20,000 Accounts payable
60,000 Payable to B
10,000 A, Capital (60%)
120,000 B, Capital (40%)
290,000
500,000 Total Liab. & Equity
30,000
20,000
250,000
200,000
500,000
Case 1: Lump-sum liquidation
The non-cash assets were realized as follows:
. Only 70% of the accounts receivable was collected; the balance
is uncollectible.
b. P20,000 was received for the entire inventory.
c. The equipment was sold for P310,000.
d. P12,000 liquidation expenses were paid.
Requirement: Compute for the cash distributions to the partners.
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