On January 1, 20X2, the partners of Allen, Brown, and Cox, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date is as follows: Debit Credit Cash P 18,000 Accounts receivable 66,000 Inventory 52,000 Machinery and equipment, net 189,000 Allen, loan 30,000 Accounts payable P 53,000 Brown, loan 20,000 Allen, capital 118,000 Brown, capital 90,000 Cox, capital 74,000 Total P355,000 P355,000 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. A summary of the liquidation transactions is as follows: January 20X2: a. P51,000 was collected on accounts receivable; the balance is uncollectible. b. P38,000 was received for the entire inventory. c. P2,000 liquidation expenses were paid. d. P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 20X2. e. 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. Required: Compute for the safe installment to the partners as of January 31, 20x2. Show supporting computations in good form.
On January 1, 20X2, the partners of Allen, Brown, and Cox, who share
Debit Credit
Cash P 18,000
Inventory 52,000
Machinery and equipment, net 189,000
Allen, loan 30,000
Accounts payable P 53,000
Brown, loan 20,000
Allen, capital 118,000
Brown, capital 90,000
Cox, capital 74,000
Total P355,000 P355,000
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. A summary of the liquidation transactions is as follows:
January 20X2:
a. P51,000 was collected on accounts receivable; the balance is uncollectible.
b. P38,000 was received for the entire inventory.
c. P2,000 liquidation expenses were paid.
d. P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 20X2.
e. P10,000 cash was retained in the business at the end of the month for
All partners are insolvent.
Required:
Compute for the safe installment to the partners as of January 31, 20x2. Show supporting computations in good form.
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