D, E and F are partners in DEF Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of financial position presented below: Cash P 3,000,000 Liabilities P10,000,000 Noncash assets 17,000,000 D, Capital 1,000,000 E, Capital 4,000,000 F, Capital 5,000,000 The following additional notes are provided:
D, E and F are partners in DEF Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of financial position presented below: Cash P 3,000,000 Liabilities P10,000,000 Noncash assets 17,000,000 D, Capital 1,000,000 E, Capital 4,000,000 F, Capital 5,000,000 The following additional notes are provided:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6465
D, E and F are partners in DEF
|
Cash |
P 3,000,000 |
Liabilities |
P10,000,000 |
|
Noncash assets |
17,000,000 |
D, Capital |
1,000,000 |
|
|
|
E, Capital |
4,000,000 |
|
|
|
F, Capital |
5,000,000 |
The following additional notes are provided:
- All partners are legally declared to be personally insolvent.
- All noncash assets are sold during the liquidation process.
- Liquidation expenses amounting to P2,000,000 were paid.
- E receives a total of P2,500,000 at the end of liquidation.
1. What is the amount received by F at the end of liquidation?
2. How much is the net proceeds from the sale of all noncash assets?
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