On December 31, 2019, the balance sheet for the XYZ Partnership follows:The percentages shown are for the residual profit and loss sharing ratios. The partners dissolved the partnership on January 1, 2020 and began the liquidation process. During January the following events occurred:Receivables of P7,500 were collected.All inventory was sold for P10,000.All available cash was distributed on January 31, 2020, except for P5,000 that was set aside for contingent expenses.How much cash would Xander receive from the cash that is available for distribution on January 31? CashAccounts receivableInventoryPlant assets, netLoan to XanderTotal assets10,000 Accounts payable15,000 Loan from Zoilo35,000 Xander, capital (20%)30,000 Ysabel, capital (20%)15,000 Zoilo, capital(60%)105,000 Total liabilitylequity17,50012,50035,00025,00015,000105,000

At the time of liquidation first the outside liabilities are settled and then if any cash remain it…

Answered: On December 31, 2019, the balance sheet…

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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On December 31, 2019, the balance sheet for the XYZ Partnership follows:

The percentages shown are for the residual profit and loss sharing ratios. The partners dissolved the partnership on January 1, 2020 and began the liquidation process. During January the following events occurred:

Receivables of P7,500 were collected.
All inventory was sold for P10,000.
All available cash was distributed on January 31, 2020, except for P5,000 that was set aside for contingent expenses.

How much cash would Xander receive from the cash that is available for distribution on January 31?

Cash
Accounts receivable
Inventory
Plant assets, net
Loan to Xander
Total assets
10,000 Accounts payable
15,000 Loan from Zoilo
35,000 Xander, capital (20%)
30,000 Ysabel, capital (20%)
15,000 Zoilo, capital(60%)
105,000 Total liabilitylequity
17,500
12,500
35,000
25,000
15,000
105,000

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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