On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 is presented as follows: Cash Noncash asset P1,600,000 Total Liabilities 1,400,000 A, Capital В, Сарital С, Сарital P2,000,000 100,000 500,000 400,000 On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of Jamuary 31, 2021, the following transactions occured: Noncash assets with a book value P1,000,000 were sold at a gain of P100,000. • Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of February, 2021.
On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 is presented as follows: Cash Noncash asset P1,600,000 Total Liabilities 1,400,000 A, Capital В, Сарital С, Сарital P2,000,000 100,000 500,000 400,000 On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of Jamuary 31, 2021, the following transactions occured: Noncash assets with a book value P1,000,000 were sold at a gain of P100,000. • Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of February, 2021.
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
What is the amount of total cash withheld on January 31, 2021?
P550,000
P1,600,000
P1,750,000
P1,700,000
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