IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A S00,000 Payable to B 1,000,000 Other non cash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) c, Capital 350,000 a January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non cash assets were sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred.
IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A S00,000 Payable to B 1,000,000 Other non cash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) c, Capital 350,000 a January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non cash assets were sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. How much cash was received by A at the end of
2. How much cash was received by B at the end of partnership liquidation?
Transcribed Image Text:IV On December 31, 2020, the Statement of Financial Position of ABC Partnership
with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the
following data:
Cash 1,000,000
Other Liabilities 2,000,000
Receivable from A 500,000
Payable to B 1,000,000
Other non cash assets 2,000,000 Payable to C 100,000
A, Capital 700,000
B, Capital (650,000)
C, Capital 350,000
On January 1, 2021, the partners decided to liquidate the partnership. All partners are
legally declared to be personally insolvent. The other non cash assets were sold for
P1,500,000. Liquidation expenses amounting to P100,000 were incurred.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education