How much did B receive in the cash distribution to the partners?a. 18,000b. 22,000c. 32,000d. 48,000 A and B decided to liquidate their partnership. The partnership's records show the followinginformation:Cash20,000Non-cash assets80,000Total assets100,000Liabilities15,000Loan payable to Partner ALoan payable to Partner BA, capital (80%)B, capital (20%)Total liabilities and equity10,00017,00036,00022,000100,000All the non-cash assets were sold for P50,000. Selling costs of P5,000 were incurred on the sale. Howmuch did B receive in the cash distribution to the partners?

Partnership:- It is a form of business where two or more people join to share profit and contribute…

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Business

Accounting

How much did B receive in the cash distribution to the partners? a. 18,000 b. 22,000 c. 32,000 d. 48,000

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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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

How much did B receive in the cash distribution to the partners?

a. 18,000

b. 22,000

c. 32,000

d. 48,000

A and B decided to liquidate their partnership. The partnership's records show the following
information:
Cash
20,000
Non-cash assets
80,000
Total assets
100,000
Liabilities
15,000
Loan payable to Partner A
Loan payable to Partner B
A, capital (80%)
B, capital (20%)
Total liabilities and equity
10,000
17,000
36,000
22,000
100,000
All the non-cash assets were sold for P50,000. Selling costs of P5,000 were incurred on the sale. How
much did B receive in the cash distribution to the partners?

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