The condensed financial position of Abdon, Berto and Cardo as of March 31, 20x1 showed the following: Cash               P  28,000 Other assets    265,000 Liabilities         48,000 Abdon, Capital      95,000 Berto, Capital        80,000 Cardo, Capital      70,000   The income and loss ratio is 2:1:1 respectively. The partners decided to dissolve their partnership and liquidate by selling other assets in installment. All the partners are personally solvent. The first cash sale of assets with book value of P 150,000 was for P 70,000. After settlement with creditors, P35, 000 cash was distributed to the partners. How much cash was received by Cardo? P 12,500  P 21,250  P 20,000 P 17,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
  1. The condensed financial position of Abdon, Berto and Cardo as of March 31, 20x1 showed the following:

Cash               P  28,000

Other assets    265,000

Liabilities         48,000

Abdon, Capital      95,000

Berto, Capital        80,000

Cardo, Capital      70,000

 

The income and loss ratio is 2:1:1 respectively. The partners decided to dissolve their partnership and liquidate by selling other assets in installment. All the partners are personally solvent. The first cash sale of assets with book value of P 150,000 was for P 70,000. After settlement with creditors, P35, 000 cash was distributed to the partners. How much cash was received by Cardo?

  1. P 12,500 
  2. P 21,250 
  3. P 20,000
  4. P 17,500

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Accounting for Liquidation of Companies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education