A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities P 144,000 240,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P

A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities P 144,000 240,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P

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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Question

A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in
the ratio of 2:1:1, shows the following balances just before liquidation:
Assets
Cash
Other assets
Liabilities and Equity
Liabilities
240,000
P 144,000
714,000
John, capital
264,000
186,000
Paul, capital
Ryan, capital
168,000
In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of
P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and
sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners,
John receives P60,000.
How much is the theoretical losses in the first month of liquidation?
P

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