After a long dispute, AA, BB, and CC decided to liquidate their partnership. Their capital balances as of January 2, 2022 are as follows: AA, capital (25%) P750,000 BB, capital (40%) 900,000 CC, capital (35%) 560,000 The partnership’s total assets on this date include P250,000 cash and a receivable from AA amounting to P50,000 and noncash assets of a certain amount. Total liabilities to outside creditors, immediately before liquidation, are P640,000 and the partnership still owes CC an amount of P20,000. Liquidation expenses of P25,000 were paid during the liquidation proceedings. At the end of liquidation, BB received P575,000. How much is the carrying amount of the non-cash assets, other than the receivable from AA, immediately before liquidation?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
After a long dispute, AA, BB, and CC decided to liquidate their partnership. Their capital balances as of January 2, 2022 are as follows:
|
AA, capital (25%) |
P750,000 |
|
BB, capital (40%) |
900,000 |
|
CC, capital (35%) |
560,000 |
The partnership’s total assets on this date include P250,000 cash and a receivable from AA amounting to P50,000 and noncash assets of a certain amount. Total liabilities to outside creditors, immediately before liquidation, are P640,000 and the partnership still owes CC an amount of P20,000. Liquidation expenses of P25,000 were paid during the liquidation proceedings. At the end of liquidation, BB received P575,000.
How much is the carrying amount of the non-cash assets, other than the receivable from AA, immediately before liquidation?
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