Partners ABC, DEF and GHI share profits and losses in the ratio of 2:3:5, respectively. At the end of a very unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this time are as follows: ABC - P22,000; DEF -P24,900 and GHI - P15,000. The liabilities accumulate to P30,000, including a loan of P5,000 from ABC. The cash balance is P6,000. All the partners are personally solvent. The partners plan to sell the assets in installment. If ABC received a total of P50,000 as a result of the liquidation, what was the total amount realized from the sale of the non-cash assets?
Partners ABC, DEF and GHI share profits and losses in the ratio of 2:3:5, respectively. At the end of a very unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this time are as follows: ABC - P22,000; DEF -P24,900 and GHI - P15,000. The liabilities accumulate to P30,000, including a loan of P5,000 from ABC. The cash balance is P6,000. All the partners are personally solvent. The partners plan to sell the assets in installment. If ABC received a total of P50,000 as a result of the liquidation, what was the total amount realized from the sale of the non-cash assets?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Partners ABC, DEF and GHI share profits and losses in the ratio of
2:3:5, respectively. At the end of a very unprofitable year, they
decided to liquidate the firm. The partner's capital account balances
at this time are as follows: ABC - P22,000; DEF -P24,900 and GHI -
P15,000. The liabilities accumulate to P30,000, including a loan of
P5,000 from ABC. The cash balance is P6,000. All the partners are
personally solvent. The partners plan to sell the assets in installment.
If ABC received a total of P50,000 as a result of the liquidation, what
was the total amount realized from the sale of the non-cash assets?
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