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All partners are insolvent. How much did C receive on the January 31, 20X2 cash distribution to the partners?

All partners are insolvent. How much did C receive on the January 31, 20X2 cash distribution to the partners?

FINANCIAL ACCOUNTING
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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1. On January 1, 20X2, partners A, B and C, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. The partnership trial balance at this date is as follows: Credit Cash Accounts Receivable Inventory Machinery and Equipment, net A, Loan ● Accounts Payable B, Loan A, Capital B, Capital C, Capital Totals Debit 18,000 66,000 52,000 189,000 30,000 53,000 20,000 118,000 90,000 74,000 355,000 355,000 The partners plan a program of piecemeal conversion of assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. The following liquidation transactions occurred in January 20X2. P51,000 was collected on accounts receivable; the balance in uncollectible. ● $48,000 was received for the entire inventory. $2,000 liquidation expenses were paid. P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 20X2. P10,000 cash was retained in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. All partners are insolvent. How much did C receive on the January 31, 20X2 cash distribution to the partners?
Transcribed Image Text:1. On January 1, 20X2, partners A, B and C, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. The partnership trial balance at this date is as follows: Credit Cash Accounts Receivable Inventory Machinery and Equipment, net A, Loan ● Accounts Payable B, Loan A, Capital B, Capital C, Capital Totals Debit 18,000 66,000 52,000 189,000 30,000 53,000 20,000 118,000 90,000 74,000 355,000 355,000 The partners plan a program of piecemeal conversion of assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. The following liquidation transactions occurred in January 20X2. P51,000 was collected on accounts receivable; the balance in uncollectible. ● $48,000 was received for the entire inventory. $2,000 liquidation expenses were paid. P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 20X2. P10,000 cash was retained in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. All partners are insolvent. How much did C receive on the January 31, 20X2 cash distribution to the partners?
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