A local partnership was considering the possibility of liquidation since one of the partners (Ding) was insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. Ding, Capital – P60,000; Laurel, Capital – P67,000; Ezzard, Capital – P17,000; Tillman, Capital – P96,000. Ding’s creditors filed a P25,000 claim against the partnership’s assets. At that time, the partnership held assets reported at P360,000 and liabilities of P120,000. If the assets could be sold for P228,000 what is the minimum amount that Ding’s creditors would have received? a. P -0- b. P2,500 c. P36,000 d. P38,250
A local partnership was considering the possibility of liquidation since one of the partners (Ding) was insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. Ding, Capital – P60,000; Laurel, Capital – P67,000; Ezzard, Capital – P17,000; Tillman, Capital – P96,000. Ding’s creditors filed a P25,000 claim against the partnership’s assets. At that time, the partnership held assets reported at P360,000 and liabilities of P120,000. If the assets could be sold for P228,000 what is the minimum amount that Ding’s creditors would have received? a. P -0- b. P2,500 c. P36,000 d. P38,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A local partnership was considering the possibility of liquidation since one of the partners (Ding) was
insolvent. Capital balances at that time were as follows.
basis,
respectively. Ding, Capital – P60,000; Laurel, Capital – P67,000; Ezzard, Capital – P17,000; Tillman,
Capital – P96,000. Ding’s creditors filed a P25,000 claim against the partnership’s assets. At that time, the
partnership held assets reported at P360,000 and liabilities of P120,000. If the assets could be sold for
P228,000 what is the minimum amount that Ding’s creditors would have received?
a. P -0-
b. P2,500
c. P36,000
d. P38,250
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