Answered: At the end of liquidation, A received…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 59P

See similar textbooks

Related questions

Question

Given:
Cash 1,200,000
Noncash assets 800,000
Total Liabilities 1,500,000
A, Capital 150,000
B, Capital 300,000
C, Capital 50,000

On December 31, 2019, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 1:4:5 is presented as follows: On January 1, 2020, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other noncash assets were sold at a specific price. Liquidation expenses amounting to P50,000 were incurred. At the end of liquidation, A received P80,000. What is the net proceeds from the sale of noncash asset during partnership liquidation?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution