A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P130,000 Non-Cash Assets 300,000 A, Capital 60,000 B, Capital 40,000 C, Capital 80,000 Total P310,000 Total P310,000 A,B and C share profits and losses in the ratio of 3:4:3. Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A was personally insolvent, B and C were both solvent and able to cover deficit in their capital accounts, if any. What amount of cash should be paid to partner A?

A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P130,000 Non-Cash Assets 300,000 A, Capital 60,000 B, Capital 40,000 C, Capital 80,000 Total P310,000 Total P310,000 A,B and C share profits and losses in the ratio of 3:4:3. Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A was personally insolvent, B and C were both solvent and able to cover deficit in their capital accounts, if any. What amount of cash should be paid to partner A?

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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