The following information are related to JVCD Corporation which is undergoing liquidation: a. A bank loan amounting to P455,000 is secured by inventories with book value of P525,000 and net realizable value of P350,000. b. Of the P1,120,000 accounts payable, P343,000 is secured by accounts receivable amounting to P413,000 which is 10% uncollectible. c. Property and equipment costing P875,000 and which is depreciated by 20% has a net realizable value of P588,000. d. Other unrecorded liabilities are accrued interest payable on bank loan, P45,500; salaries payable, P112,000; taxes payable, P63,000 and trustee’s fee, P52,500. e. Cash available before liquidation amounts to P87,500. Compute for the estimated deficiency to unsecured creditors. A. 450,800 B. 882,000 C. 927,500 D. 980,000
The following information are related to JVCD Corporation which is
undergoing liquidation:
a. A bank loan amounting to P455,000 is secured by inventories with
book value of P525,000 and net realizable value of P350,000.
b. Of the P1,120,000 accounts payable, P343,000 is secured by
uncollectible.
c. Property and equipment costing P875,000 and which is
by 20% has a net realizable value of P588,000.
d. Other unrecorded liabilities are accrued interest payable on bank
loan, P45,500; salaries payable, P112,000; taxes payable, P63,000
and trustee’s fee, P52,500.
e. Cash available before liquidation amounts to P87,500.
Compute for the estimated deficiency to unsecured creditors.
A. 450,800
B. 882,000
C. 927,500
D. 980,000
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