On January 1, 2021, the partnership of TM, JK and AB, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership accounts were as follows: Cash TM, Capital P 375,000 1,125,000 P408,000 Other Assets JK, Capital 474,000 Liabilities. 282,000 AB, Capital 336,000 On January 15, 2021, the first cash sale of other assets with a carrying amount of P540,000 realized P444,000. Safe installment payments to the partners were made the same date. 1. If cash of P165,000 is to be withheld for contingencies, how much cash should be distributed to AB? 2. Assuming the first cash sale of other assets with a arrying amount of P690,000 realized P495,000 and cash of P240,000 is to be withheld, how much cash should be distributed to JK?

On January 1, 2021, the partnership of TM, JK and AB, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership accounts were as follows: Cash TM, Capital P 375,000 1,125,000 P408,000 Other Assets JK, Capital 474,000 Liabilities. 282,000 AB, Capital 336,000 On January 15, 2021, the first cash sale of other assets with a carrying amount of P540,000 realized P444,000. Safe installment payments to the partners were made the same date. 1. If cash of P165,000 is to be withheld for contingencies, how much cash should be distributed to AB? 2. Assuming the first cash sale of other assets with a arrying amount of P690,000 realized P495,000 and cash of P240,000 is to be withheld, how much cash should be distributed to JK?

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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