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On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available:

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available:

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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183,200 is incorrect. 

1. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: 80,000 240,000 Cash Accounts receivable Inventory Equipment 480,000 1,200,000 2,000,000 Total Accounts payable Payable to B A, Capital (20%) B, Capital (30%) C, Capital (50%) Total 120,000 80,000 400,000 600,000 800,000 2,000,000 Information on the conversion of non-cash assets is as follows: • P40,000 was collected on accounts receivable; the balance is uncollectible. • P20,000 was received for the entire inventory. The equipment was sold for P200,000. P8,000 liquidation expenses were paid. P108,000 was paid to outside creditors, after offset of a P12,000 credit memorandum received on January 2, 20x1. • Cis personally insolvent. How much did B receive from the settlement of his interest in the partnership? a. 86,400 b. 166,400 c. 183,200 d. 0
Transcribed Image Text:1. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: 80,000 240,000 Cash Accounts receivable Inventory Equipment 480,000 1,200,000 2,000,000 Total Accounts payable Payable to B A, Capital (20%) B, Capital (30%) C, Capital (50%) Total 120,000 80,000 400,000 600,000 800,000 2,000,000 Information on the conversion of non-cash assets is as follows: • P40,000 was collected on accounts receivable; the balance is uncollectible. • P20,000 was received for the entire inventory. The equipment was sold for P200,000. P8,000 liquidation expenses were paid. P108,000 was paid to outside creditors, after offset of a P12,000 credit memorandum received on January 2, 20x1. • Cis personally insolvent. How much did B receive from the settlement of his interest in the partnership? a. 86,400 b. 166,400 c. 183,200 d. 0
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