The statement of Financial Position of Highschool Kids, just before liquidation is as follows: Assets Liabilities & Capital Cash50,000 Liabilities70,000Other assets140,000 Loan, Young20,000Loans to Broke10,000 Young, capital (50%)30,000 Dumb, capital (30%)50,000 Broke, capital (20%)30,000Total200,000 Total200,000 The partners Young and Dumb are personally insolvent. If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid, how much cash should Young, Dumb and Broke receive? YoungDumbBrokeA.32,50051,50031,000B.55,00053,00022,000C.52,50051,50021,000D.47,50048,50019,000

Correct answer is :- C 52500 ,51500 ,21000

Answered: liquidation

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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The statement of Financial Position of Highschool Kids, just before liquidation is as follows:

Assets		Liabilities & Capital
Cash	50,000	Liabilities	70,000
Other assets	140,000	Loan, Young	20,000
Loans to Broke	10,000	Young, capital (50%)	30,000
		Dumb, capital (30%)	50,000
		Broke, capital (20%)	30,000
Total	200,000	Total	200,000

The partners Young and Dumb are personally insolvent.

If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid, how much cash should Young, Dumb and Broke receive?

	Young	Dumb	Broke
A.	32,500	51,500	31,000
B.	55,000	53,000	22,000
C.	52,500	51,500	21,000
D.	47,500	48,500	19,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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