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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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