25. The condensed balance sheet of the 3M Partnership as of June 30, 2020 with the corresponding profit and loss shares of the partners is as follows: Net assets - 400,000: Mark, capital (50%) - 200,000: Mon, capital (30%)-120.000; Mike, capital (20%)- 80.000, As of said date, Mark retired from the partnership. As agreed, he was paid P225,000 for his interest. As per agreement, assets are to be revalued prior to Mark's retirement. What is the total capital of Mon and Mike after Mark's retirement?
25. The condensed balance sheet of the 3M Partnership as of June 30, 2020 with the corresponding profit and loss shares of the partners is as follows: Net assets - 400,000: Mark, capital (50%) - 200,000: Mon, capital (30%)-120.000; Mike, capital (20%)- 80.000, As of said date, Mark retired from the partnership. As agreed, he was paid P225,000 for his interest. As per agreement, assets are to be revalued prior to Mark's retirement. What is the total capital of Mon and Mike after Mark's retirement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:25. The condensed balance sheet of the 3M Partnership as of June 30, 2020 with the corresponding profit
and loss shares of the partners is as follows: Net assets - 400,000; Mark, capital (50%) – 200,000: Mon,
capital (30%)-120.000; Mike, capital (20%)- 80,000. As of said date, Mark retired from the partnership.
As agreed, he was paid P225,000 for his interest. As per agreement, assets are to be revalued prior to
Mark's retirement. What is the total capital of Mon and Mike after Mark's retirement?
Transcribed Image Text:26. The Sheen, Jimmy and Carl partnership had the following balance sheet just before entering
liquidation:
Cash
P10,000
Liabilities
P130,000
Noncash assets
300,000
Sheen, capital
60,000
Jimmy, capital
40,000
Carl, capital
80,000
P310,000
P310,000
Sheen, Jimmy and Carl share profits and losses in a ratio of 2:4:4. Non-cash assets were sold for
P180,000. Liquidation expenses were P10,000. Assume that Jimmy was personally insolvent and could
not contribute any assets to the partnership, while Sheen and Carl were both solvent, What amount
of cash would Sheen receive from the distribution of partnership assets?
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