Problem 15. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 is presented below: Cash P1,600,000 Total Liabilities P2,000,000 Non Cash Assets 1,400,000 A, capital 100,000 B, capital 500,000 C, Capital 400,000 On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2021, the following transactions occurred: - Noncash Assets with book value of P1,000,000 were sold at a gain of P100,000.00 - Liquidation expenses for the month of January amounting to P50,000 were paid. - It is estimated that liquidation expenses amounting to P150,000 will be incurred For the month of February, 2021. - 20% of the liabilities to third person were settled. - Available cash were distributed to partners As of February 28, 2021, the following transactions occurred: - Remaining noncash assets were sold at a loss of P100,000 - The remaining liabilities to third persons were settled at a compromise amount of P1,500,000 - Remaining cash were finally distributed to Partners.
Problem 15.
On December 31, 2020, the
with profit or loss ratio of 5:3:2 is presented below:
Cash
P1,600,000
Total Liabilities
P2,000,000
Non Cash Assets
1,400,000
A, capital
100,000
B, capital
500,000
C, Capital
400,000
On January 1, 2021, the partners decided to liquidate the partnership in
installment. All partners are legally declared to be personally insolvent.
As of January 31, 2021, the following transactions occurred:
- Noncash Assets with book value of P1,000,000 were sold at a gain of
P100,000.00
- Liquidation expenses for the month of January amounting to P50,000 were
paid.
- It is estimated that liquidation expenses amounting to P150,000 will be incurred
For the month of February, 2021.
- 20% of the liabilities to third person were settled.
- Available cash were distributed to partners
As of February 28, 2021, the following transactions occurred:
- Remaining noncash assets were sold at a loss of P100,000
- The remaining liabilities to third persons were settled at a compromise amount of
P1,500,000
- Remaining cash were finally distributed to Partners.
What is the amount of total cash withheld on January 31, 2021?
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