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The book value of the partnership equity (i.e., total equity of the partners) on June 30, 2021 is?

The book value of the partnership equity (i.e., total equity of the partners) on June 30, 2021 is?

FINANCIAL ACCOUNTING
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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On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 12,000 B, Capital (30% ) 6,000 C, Capital (50%) Plant assets - net 10,000 Loan to A 6,000 42,000 Total 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021 and began the liquidation process. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: The book value of the partnership equity (i.e., total equity of the partners) on June 30, 2021 is?
Transcribed Image Text:On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 12,000 B, Capital (30% ) 6,000 C, Capital (50%) Plant assets - net 10,000 Loan to A 6,000 42,000 Total 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021 and began the liquidation process. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: The book value of the partnership equity (i.e., total equity of the partners) on June 30, 2021 is?
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