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On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C showed the following information: Cash P1,600,000 Total liabilities P2,000,000 Noncash assets 1,400,000 A, Capital 100,000 B, Capital 500,000 C, Capital 400,000 On January 1, 20x21, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent.

On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C showed the following information: Cash P1,600,000 Total liabilities P2,000,000 Noncash assets 1,400,000 A, Capital 100,000 B, Capital 500,000 C, Capital 400,000 On January 1, 20x21, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent.

FINANCIAL ACCOUNTING
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 Demeber 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners.
Noncash assets with a carrying amount 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, 20x21. • 20% of the liabilities to third persons were settled. Available cash was distributed to the partners. As of February 28, 20x21, the following transactions occurred: Remaining noncash assets were sold at a loss of P100,000. • The final liquidation expenses for the month of February amounted to P100,000. The remaining liabilities to third persons were settled. Remaining cash was finally distributed to the partners. How much is the amount of total cash withheld on January 31, 20x21?
Transcribed Image Text:Noncash assets with a carrying amount 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, 20x21. • 20% of the liabilities to third persons were settled. Available cash was distributed to the partners. As of February 28, 20x21, the following transactions occurred: Remaining noncash assets were sold at a loss of P100,000. • The final liquidation expenses for the month of February amounted to P100,000. The remaining liabilities to third persons were settled. Remaining cash was finally distributed to the partners. How much is the amount of total cash withheld on January 31, 20x21?
prdings - Un On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C showed the following information: Cash P1,600,000 Total liabilities P2,000,000 Noncash assets 1,400,000 A, Capital 100,000 B, Capital 500,000 C, Capital 400,000 On January 1, 20x21, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 20x21, the following transactions occurred: Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000.
Transcribed Image Text:prdings - Un On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C showed the following information: Cash P1,600,000 Total liabilities P2,000,000 Noncash assets 1,400,000 A, Capital 100,000 B, Capital 500,000 C, Capital 400,000 On January 1, 20x21, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 20x21, the following transactions occurred: Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000.
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