On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cas on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cas on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios
and capital balances on this date were as follows:
L 25%
2,500,000.00
C 35%
5,400,000.00
M 40% 3,700,000.00
Total
11,600,000.00
The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of
P600,000.
Cash on hand before starting the liquidation process is P 800,000.
Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash
assets were sold at a loss of P 4,200,000.
How much cash will be distributed to the partners?
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