On January 1, 20X2, partners ABC, BCD and CDE, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. The partnership trial balance at this date is as follows: Credit Cash Accounts receivable Debit 18,000 66,000 52,000 189,000 30,000 Inventory Machinery and equipment, net ABC, loan Accounts payable BCD, loan 53,000 20,000 ABC, capital 118,000 BCD, capital CDE, capital Totals 2.. 90,000 74,000 355,000 355,000 The partners plan a program of piecemeal conversion of assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. The following liquidation transactions occurred in January 20X2. . P51,000 was collected on accounts receivable; the balance is uncollectible. P48,000 was received for the entire inventory. P2,000 liquidation expenses were paid. P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 20X2. • P10,000 cash was retained in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. All partners are insolvent. How much did CDE receive on the January 31, 20X2 cash distribution to the partners? ERSITY
On January 1, 20X2, partners ABC, BCD and CDE, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. The partnership trial balance at this date is as follows: Credit Cash Accounts receivable Debit 18,000 66,000 52,000 189,000 30,000 Inventory Machinery and equipment, net ABC, loan Accounts payable BCD, loan 53,000 20,000 ABC, capital 118,000 BCD, capital CDE, capital Totals 2.. 90,000 74,000 355,000 355,000 The partners plan a program of piecemeal conversion of assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. The following liquidation transactions occurred in January 20X2. . P51,000 was collected on accounts receivable; the balance is uncollectible. P48,000 was received for the entire inventory. P2,000 liquidation expenses were paid. P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 20X2. • P10,000 cash was retained in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. All partners are insolvent. How much did CDE receive on the January 31, 20X2 cash distribution to the partners? ERSITY
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 20X2, partners ABC, BCD and CDE, who share profits and losses in the ratio of 5:3:2,
respectively, decided to liquidate their partnership. The partnership trial balance at this date is as
follows:
Debit
Credit
Cash
Accounts receivable
18,000
66,000
52,000
Inventory
Machinery and equipment, net
189,000
30,000
ABC, loan
Accounts payable
53,000
20,000
BCD, loan
118,000
ABC, capital
BCD, capital
CDE, capital
Totals
Pr
90,000
74,000
355,000
355,000
The partners plan a program of piecemeal conversion of assets in order to minimize liquidation
losses. All available cash, less an amount retained to provide for future expenses, is to be distributed
to the partners at the end of each month. The following liquidation transactions occurred in January
P51,000 was collected on accounts receivable; the balance is uncollectible.
P48,000 was received for the entire inventory.
P2,000 liquidation expenses were paid.
P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on
January 11, 20X2.
P10,000 cash was retained in the business at the end of the month for potential unrecorded
liabilities and anticipated expenses.
All partners are insolvent. How much did CDE receive on the January 31, 20X2 cash distribution to
the partners?
ERSITY
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