Requirement: Compute for the cash distributions to the partners. Case 2: Installment liquidation Done will be liquidated on installment basis. Cash distributions to the partners will be made as cash becomes available. In the first month of the liquidation process, the non-cash assets were realized as follows: a. Half of the accounts receivable was collected. Of the remaining half, P10,000 accounts are deemed worthless. D. Seventy-five percent of the inventory was sold at 80% of cost. C Equipment with carrying amount of P200,000 was sold for P185,000. d. P12,000 liquidation expenses were paid. Additional P5,000 iquidation expenses are expected to be incurred in subsequent periods. Nequirement: Compute for the cash distributions to the partners.
Requirement: Compute for the cash distributions to the partners. Case 2: Installment liquidation Done will be liquidated on installment basis. Cash distributions to the partners will be made as cash becomes available. In the first month of the liquidation process, the non-cash assets were realized as follows: a. Half of the accounts receivable was collected. Of the remaining half, P10,000 accounts are deemed worthless. D. Seventy-five percent of the inventory was sold at 80% of cost. C Equipment with carrying amount of P200,000 was sold for P185,000. d. P12,000 liquidation expenses were paid. Additional P5,000 iquidation expenses are expected to be incurred in subsequent periods. Nequirement: Compute for the cash distributions to the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Requirement: Compute for the cash distributions to the partners.
Case 2: Installment liquidation
Done will be liquidated on installment basis. Cash distributions to
the partners will be made as cash becomes available. In the first
month of the liquidation process, the non-cash assets were
realized as follows:
a. Half of the accounts receivable was collected. Of the
remaining half, P10,000 accounts are deemed worthless.
D. Seventy-five percent of the inventory was sold at 80% of cost.
C. Equipment with carrying amount of P200,000 was sold for
P185,000.
d. P12,000 liquidation expenses were paid. Additional P5,000
liquidation expenses are expected to be incurred in
subsequent periods.
Nequirement: Compute for the cash distributions to the partners.
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