On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. Thefollowing information was made available:CashAccounts receivableInventoryFurniture & fixtures, netTotalAccounts payableA, Capital (70%)30,000380,000260,000120,000790,000165,000350,000275,000790,000C offered to buy for $760,000 the partnership assets including liabilities but excludingcash and after certain assets are to be restated to their fair values as follows:Accounts receivable, P350,000Inventory, P250,000Furniture, P135,000How much will A and B receive as final settlement of their partnership interests?

Answer:- Partnership meaning:- A partnership can be defined as the agreement between two or more…

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Furniture & fixtures, net Total Accounts payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 120,000 790,000 165,000 350,000 275,000 NTIA C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: 90,000 Accounts receivable, P350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Furniture & fixtures, net Total Accounts payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 120,000 790,000 165,000 350,000 275,000 NTIA C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: 90,000 Accounts receivable, P350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?

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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