he partnership of C, A, and G named BREAKEVEN decided to liquidate their partnership on May 31, 2021. Before liquidating and sharing of net income, their capital balances are as follows: C (30%) 250,000, A (30%) P180,000, and G (40%) P220,000. Net income from January I to May 31 is P120,000. Liabilities of the partnership amounted to P210,000 and its total assets include cash amounting to P 70,000. Unsettled liabilities are P 110,000. C invested additional cash enough to settle their partnership's indebtedness. A is personally solvent, G is personally insolvent, and C becomes insolvent after investing the cash needed by the partnership. How much were the proceeds from the sale of the partnership's non-cash assets? How much cash will A investin the partnership? How much will C receive as a result of their liquidation?
he partnership of C, A, and G named BREAKEVEN decided to liquidate their partnership on May 31, 2021. Before liquidating and sharing of net income, their capital balances are as follows: C (30%) 250,000, A (30%) P180,000, and G (40%) P220,000. Net income from January I to May 31 is P120,000. Liabilities of the partnership amounted to P210,000 and its total assets include cash amounting to P 70,000. Unsettled liabilities are P 110,000. C invested additional cash enough to settle their partnership's indebtedness. A is personally solvent, G is personally insolvent, and C becomes insolvent after investing the cash needed by the partnership. How much were the proceeds from the sale of the partnership's non-cash assets? How much cash will A investin the partnership? How much will C receive as a result of their liquidation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The partnership of C, A, and G named BREAKEVEN decided to liquidate their partnership on May 31, 2021. Before liquidating and sharing of net income, their capital balances are as follows: C (30%) 250,000, A (30%) P180,000, and G (40%) P220,000. Net income from January I to May 31 is P120,000. Liabilities of the partnership amounted to P210,000 and its total assets include cash amounting to P 70,000.
Unsettled liabilities are P 110,000. C invested additional cash enough to settle their partnership's indebtedness. A is personally solvent, G is personally insolvent, and C becomes insolvent after investing the cash needed by the partnership.
- How much were the proceeds from the sale of the partnership's non-cash assets?
- How much cash will A investin the partnership?
- How much will C receive as a result of their liquidation?
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