A, B and C are partners. On January 2, 2020, their capital balances and profit and loss ratio are as follows: ` Capital P&L ratio A P625,000 60% B 1,250,000 25% C 1,500,000 15% C withdrew P250,000 during the year. Net loss on December 31, 2020 totaled P500,000. Hence, the partners decided to liquidate the partnership. It is uncertain how much of the assets will ultimately yield but favorable realization is expected. It is therefore, agreed to distribute cash as it become available. There are unpaid liabilities of P125,000 and cash of P17,500. The amount of non-cash assets before liquidation is:
A, B and C are partners. On January 2, 2020, their capital balances and profit and loss ratio are as follows: ` Capital P&L ratio A P625,000 60% B 1,250,000 25% C 1,500,000 15% C withdrew P250,000 during the year. Net loss on December 31, 2020 totaled P500,000. Hence, the partners decided to liquidate the partnership. It is uncertain how much of the assets will ultimately yield but favorable realization is expected. It is therefore, agreed to distribute cash as it become available. There are unpaid liabilities of P125,000 and cash of P17,500. The amount of non-cash assets before liquidation is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A, B and C are partners. On January 2, 2020, their capital balances and
|
` |
Capital |
P&L ratio |
|
A |
P625,000 |
60% |
|
B |
1,250,000 |
25% |
|
C |
1,500,000 |
15% |
C withdrew P250,000 during the year. Net loss on December 31, 2020 totaled P500,000. Hence, the partners decided to liquidate the partnership. It is uncertain how much of the assets will ultimately yield but favorable realization is expected. It is therefore, agreed to distribute cash as it become available. There are unpaid liabilities of P125,000 and cash of P17,500. The amount of non-cash assets before liquidation is:
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