26. The Sheen, Jimmy and Carl partnership had the following balance sheet just before enteringliquidation:CashP10,000LiabilitiesP130,000Noncash assets300,000Sheen, capital60,000Jimmy, capital40,000Carl, capital80,000P310,000P310,000Sheen, Jimmy and Carl share profits and losses in a ratio of 2:4:4. Non-cash assets were sold forP180,000. Liquidation expenses were P10,000. Assume that Jimmy was personally insolvent and couldnot contribute any assets to the partnership, while Sheen and Carl were both solvent. What amountof cash would Sheen receive from the distribution of partnership assets?

Sheen will receive 33,333 and Carl Receive 26667 at the time of Dissolution of partnership firm.…

Answered: en and Carl were both rtnership assets?

Business

Accounting

en and Carl were both rtnership assets?

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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Question

26. The Sheen, Jimmy and Carl partnership had the following balance sheet just before entering
liquidation:
Cash
P10,000
Liabilities
P130,000
Noncash assets
300,000
Sheen, capital
60,000
Jimmy, capital
40,000
Carl, capital
80,000
P310,000
P310,000
Sheen, Jimmy and Carl share profits and losses in a ratio of 2:4:4. Non-cash assets were sold for
P180,000. Liquidation expenses were P10,000. Assume that Jimmy was personally insolvent and could
not contribute any assets to the partnership, while Sheen and Carl were both solvent. What amount
of cash would Sheen receive from the distribution of partnership assets?

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