Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent. On Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been distributed to creditors, the statement of financial position of the partnership is as follows: Liabilities and Partners' Capital: Accounts payable - Trade P60,000 120,000 Pateno, Capital Bautista, Capital -160,000 Apalisoc, Capital -20,000 P-0- Total liabilities & partners' capital The partners share profits and losses (including gains and losses in liquidaion) in the ratio 20 %, 50% and 30%, respectively. On Jan. 17, 2021, the personal financial positions of the partners were as shown below: Partner Assets Liabilities
Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent. On Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been distributed to creditors, the statement of financial position of the partnership is as follows: Liabilities and Partners' Capital: Accounts payable - Trade P60,000 120,000 Pateno, Capital Bautista, Capital -160,000 Apalisoc, Capital -20,000 P-0- Total liabilities & partners' capital The partners share profits and losses (including gains and losses in liquidaion) in the ratio 20 %, 50% and 30%, respectively. On Jan. 17, 2021, the personal financial positions of the partners were as shown below: Partner Assets Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent.
On Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been
distributed to creditors, the statement of financial position of the partnership is as follows:
Liabilities and Partners' Capital:
Accounts payable - Trade
P60,000
120,000
Pateno, Capital
Bautista, Capital
-160,000
Apalisoc, Capital
-20,000
P-0-1
Total liabilities & partners' capital
The partners share profits and losses (including gains and losses in liquidaion) in the
ratio 20 %, 50% and 30%, respectively. On Jan. 17, 2021, the personal financial positions
of the partners were as shown below:
Partner
Assets
Liabilities
Pateno
P60,000
P80,000
200,000
Bautista
280,000
Apalisoc
250,000
240,000
Required: Determine the receipt of cash from Bautista and Apalisoc, the appropriate
distribution of cash, and the completion of the partnership liquidation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3369d18b-b678-456e-af7b-822ea6dc5c59%2F4554d2d2-edb1-46a5-a792-b7d8f5811bdf%2Fgs6mgvg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent.
On Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been
distributed to creditors, the statement of financial position of the partnership is as follows:
Liabilities and Partners' Capital:
Accounts payable - Trade
P60,000
120,000
Pateno, Capital
Bautista, Capital
-160,000
Apalisoc, Capital
-20,000
P-0-1
Total liabilities & partners' capital
The partners share profits and losses (including gains and losses in liquidaion) in the
ratio 20 %, 50% and 30%, respectively. On Jan. 17, 2021, the personal financial positions
of the partners were as shown below:
Partner
Assets
Liabilities
Pateno
P60,000
P80,000
200,000
Bautista
280,000
Apalisoc
250,000
240,000
Required: Determine the receipt of cash from Bautista and Apalisoc, the appropriate
distribution of cash, and the completion of the partnership liquidation.
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