Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2020, they agree to liquidate. A balance sheet prepared on this date is shown as follows: Assets Liabilities and Capital Non- Cash assets P 181,800 Liabilities P 84,000 A, Loan 6,000 D, Loan 3,000 A, Capital В, Саptal C, Capital D, Capital 26,400 25,800 20,400 16,200 P 181,800 Total P 181,800 Results of liquidation are summarized below: Month Proceeds Book Value Liquidation exp. Cash withheld January February P72,000 P90,000 P1,200 P4,800 21,600 30,000 1,320 1,800 March 19,200 24,000 1,440 1,200 April May 6,000 19,800 4,800 600 2,400 18,000 960 Required: Prepare the statement of liquidation and related schedule of safe payment for the month of January to May 2020 and determine payment to partners for every month.
Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2020, they agree to liquidate. A balance sheet prepared on this date is shown as follows: Assets Liabilities and Capital Non- Cash assets P 181,800 Liabilities P 84,000 A, Loan 6,000 D, Loan 3,000 A, Capital В, Саptal C, Capital D, Capital 26,400 25,800 20,400 16,200 P 181,800 Total P 181,800 Results of liquidation are summarized below: Month Proceeds Book Value Liquidation exp. Cash withheld January February P72,000 P90,000 P1,200 P4,800 21,600 30,000 1,320 1,800 March 19,200 24,000 1,440 1,200 April May 6,000 19,800 4,800 600 2,400 18,000 960 Required: Prepare the statement of liquidation and related schedule of safe payment for the month of January to May 2020 and determine payment to partners for every month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Instruction: Prepare the answers in written form using a clean paper (e.g. Yellow pad, bond paper,
notebook etc.) and submit a snapshot in CANVAS.
Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2020,
they agree to liquidate. A balance sheet prepared on this date is shown as follows:
Assets
Liabilities and Capital
Non- Cash assets
P 181,800
Liabilities
P 84,000
A, Loan
6,000
D, Loan
3,000
A, Capital
26,400
В, Сapital
C, Capital
D, Capital
25,800
20,400
16,200
Total
P 181,800
P 181,800
Results of liquidation are summarized below:
Month
Proceeds
Book Value
Liquidation exp.
Cash withheld
January
P72,000
P90,000
P1,200
P4,800
February
21,600
30,000
1,320
1,800
March
19,200
24,000
1,440
1,200
April
6,000
19,800
4,800
600
May
2,400
18,000
960
Required: Prepare the statement of liquidation and related schedule of safe payment for the month of
January to May 2020 and determine payment to partners for every month.
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