On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment basis. Distributions to partners shall be made as cash becomes available. The following information was made available: Dr. Cr. Cash 80,000 Accounts receivable 240,000 Receivable from C 40,000 Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) C, Drawings Totals 480,000 1,200,000 120,000 80,000 400,000 80,000 600,000 S00,000 120,000 2.120,000 2.120,000 During January, non-cash assets with carrying amount of P520,000 was sold for P240,000. Cost of disposing the assets amounted to PS0,000. All of the partners are personally insolvent. How much did B receive in the partial settlement of his capital account?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment basis. Distributions to partners shall be made as cash becomes available. The following information was made available: Dr. Cr. Cash 80,000 Accounts receivable 240,000 Receivable from C 40,000 Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) C, Drawings Totals 480,000 1,200,000 120,000 80,000 400,000 80,000 600,000 S00,000 120,000 2.120,000 2.120,000 During January, non-cash assets with carrying amount of P520,000 was sold for P240,000. Cost of disposing the assets amounted to PS0,000. All of the partners are personally insolvent. How much did B receive in the partial settlement of his capital account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A. 32,000
B. 0
C. 120,000
D. 140,000
Transcribed Image Text:On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment
basis. Distributions to partners shall be made as cash becomes available. The following
information was made available:
Dr.
Cr.
Cash
80,000
Accounts receivable
240,000
Receivable from C
40,000
480,000
1,200,000
Inventory
Equipment
Accounts payable
Payable to B
A, Capital (20%)
A, Drawing
B, Capital (30%)
C, Capital (50%)
C, Drawings
Totals
120,000
80,000
400,000
80,000
600,000
S00,00
120,000
2,120,000
2,120,000
During Jamuary, non-cash assets with carrying amount of P520,000 was sold for P240,000. Cost of
disposing the assets amounted to PS0,000. All of the partners are personally insolvent. How much did
B receive in the partial settlement of his capital account?
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