If all the partners are insolvent and the non-cash assets were sold at P 10,000, what is the entry to eliminate the capital deficiency in the capital deficient partner? ABC Partnership have the following balances before liquidation: 250,000 500,000 Accounts payable Aloan A, Capital (40%) B, Capital (45 %) C, Capital (15%) 50,000 10,000 190,000 Cash Non-cash assets 350,000 150,000 Debit Aloan 6 000 Credit A, Capital 6,000 Debit Aloan 10 000 Credit A, Capital 10,000 O Debit B Capita 4,500 and C. Capital 1.500: Credit A Capital 6,000 Deot A Capits 6000 Credit B Capital 4500 and C Cap ta 1,500

If all the partners are insolvent and the non-cash assets were sold at P 10,000, what is the entry to eliminate the capital deficiency in the capital deficient partner? ABC Partnership have the following balances before liquidation: 250,000 500,000 Accounts payable Aloan A, Capital (40%) B, Capital (45 %) C, Capital (15%) 50,000 10,000 190,000 Cash Non-cash assets 350,000 150,000 Debit Aloan 6 000 Credit A, Capital 6,000 Debit Aloan 10 000 Credit A, Capital 10,000 O Debit B Capita 4,500 and C. Capital 1.500: Credit A Capital 6,000 Deot A Capits 6000 Credit B Capital 4500 and C Cap ta 1,500

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

44
If all the partners are insolvent and the non-cash assets were sold at P 10,000, what is
the entry to eliminate the capital deficiency in the capital deficient partner?
ABC Partnership have the following balances before liquidation:
250,000
500,000
Accounts payable
A,loan
A, Capital (40%)
B, Capital (45%)
C, Capital (15%).
50,000
10,000
190,000
350,000
150,000
Cash
Non-cash assets
O Debit A loan 6,000 Credit A,Capital 6,000
Debit Aloan 10,000 Credit A, Capital 10,000
Deoit B Capital 4.500 and C. Capital 1.500: Credit A Capital 6,000
ODebt A Capits 6000: Credit B Capital 4500 andc Cap ta 1,500

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