10. A, B and C agreed to liquidate their partnership. Information before the start of the liquidationprocess is as follows:Cash..25,200297,600Non-cash assets..Notes payable to C..38,400Other liabilities..184,80072,000A, capital (50%)..B, capital deficit (30%)..C, capital (20%)..(12,000)39,600Non-cash assets with carrying amount of P240,000 were sold for P216,000. Liquidation expenses ofP16,800 were incurred. All the partners are insolvent. How much did C receive in the cash distributionto the partners?a. 46, 457b. 74,571с. 39,600d. 0

There must be a partnership deed in which to provide the details of the working of the partnership.…

10. A, B and C agreed to liquidate their partnership. Information be process is as follows: Cash. . Non-cash assets... Notes payable to C..... 25,200 297,600 38,400 Other liabilities. A, capital (50%)... B, capital deficit (30%)... C, capital (20%).... 184,800 72,000 (12,000) 39,600

10. A, B and C agreed to liquidate their partnership. Information be process is as follows: Cash. . Non-cash assets... Notes payable to C..... 25,200 297,600 38,400 Other liabilities. A, capital (50%)... B, capital deficit (30%)... C, capital (20%).... 184,800 72,000 (12,000) 39,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. 1. How much was the loss on realization? a. 50,000 b. 60,000 c. 70,000 d. 80,000
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