The balance sheet of the RJ, SJ and TJ partnership, just before liquidation, is as follows: Assets P120,000 Liabilities RJ, loan RJ, capital SJ, capital TJ, capital 50,000 10,000 22,000 30,000 8,000 P120,000 Total RJ, SJ and TJ share profits 5:3:2 respectively. Certain assets are sold for P80,000. Creditors are paid in full, partners are paid P20,000, and cash withheld for future expenses P10,000. How much cash is to be distributed to the partners? RJ SJ TJ PO PO a. P7,000 b. P5,750 с. Р5,250 d. P7,550 e. None of the above P13,000 P14,250 P14,750 P12,450 РО PO

The balance sheet of the RJ, SJ and TJ partnership, just before liquidation, is as follows: Assets P120,000 Liabilities RJ, loan RJ, capital SJ, capital TJ, capital 50,000 10,000 22,000 30,000 8,000 P120,000 Total RJ, SJ and TJ share profits 5:3:2 respectively. Certain assets are sold for P80,000. Creditors are paid in full, partners are paid P20,000, and cash withheld for future expenses P10,000. How much cash is to be distributed to the partners? RJ SJ TJ PO PO a. P7,000 b. P5,750 с. Р5,250 d. P7,550 e. None of the above P13,000 P14,250 P14,750 P12,450 РО PO

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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ABC, DEF and GHI who share earnings 5:3:2, respectively, decided to liquidate their partnership at which time their condensed balance sheet was as follows: Cash Other Assets Total 50,000 Liabilities 250,000 ABC, Capital DEF, Capital GHI, Capital 300,000 Total 60,000 80,000 90,000 70,000 300,000 The sale of other assets of resulted to a realization of 120,000, it was also expected that an additional liquidation expense was incurred. During payment to partners GHI received P40,000. Compute for the amount to be received by DEF.
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In preparing the schedule of safe payments, please do it in the same format with the example (lower part of the picture). Thanks!
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