On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash – P100,000
On December 31, 2018, A, B, and C decided to liquidate their partnership. The statement of financial position accounts consisted of the following prior to liquidation: Cash – P100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 31, 2018, A, B, and C decided to liquidate their partnership. The
Cash – P100,000
Loan to B – P25,000
Other assets – P1,075,000
Liabilities to outsiders – P603,000
Due to C – P32,000
A, Capital – P216,000
B, Capital – P187,000
C, Capital – P162,000
A, B, and C share profits and losses in the ratio of 4:4:2, respectively
CASE 1: The partnership was able to sell all the other assets for P1,120,000 and paid liquidation expenses of P10,000. 1. How much cash should A, B, and C receive?
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