On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso):Cash4,000 Accounts payable7,000Accounts receivable6,000 Loan from B5,000Merchandise inventory14,000 A, Capital (20%)14,00012,000 B, Capital (30% )6,000 C, Capital (50%)Plant assets- net10,000Loan to A6,00042,000Total42,000The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021and began the liquidation process.During July, the following events occurred:Receivables of P3,000 were collectedThe inventory was sold for P4,000All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expensesQuestions:The book value of the partnership equity (i.e., total equity of the partners) on June 30, 2021 is?

Partnership is a form of business in which partners agree to share profits and losses as per the…

Answered: The book value of the partnership…

Business

Accounting

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

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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