The partners of ABC Partnership decided to liquidate the partnership on January 1, 2021. The statement of financial position of the partnership in this day are as follows: Cash P600,000 Advances from B P20,000 Accounts Receivables 200,000 Trade payables 130,000 Loan receivable from 150,000 Other liabilities 220,000 A Furnitures and 250,000 A, Capital (20%) 300,000 fixtures Land 200,000 B, Capital (30%) 250,000 C, Capital (50%) 480,000 Total P1,400,000 Total P1,400,000 After payment of realization of the non-cash assets, payment of liabilities to creditors amounting to P350,000 and payment of liquidation expenses amounting to P20,000, partner A had a total interest of P80,000.
The partners of ABC Partnership decided to liquidate the partnership on January 1, 2021. The statement of financial position of the partnership in this day are as follows: Cash P600,000 Advances from B P20,000 Accounts Receivables 200,000 Trade payables 130,000 Loan receivable from 150,000 Other liabilities 220,000 A Furnitures and 250,000 A, Capital (20%) 300,000 fixtures Land 200,000 B, Capital (30%) 250,000 C, Capital (50%) 480,000 Total P1,400,000 Total P1,400,000 After payment of realization of the non-cash assets, payment of liabilities to creditors amounting to P350,000 and payment of liquidation expenses amounting to P20,000, partner A had a total interest of P80,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The partners of ABC Partnership decided to liquidate the partnership on January 1, 2021.
The statement of financial position of the partnership in this day are as follows:
Cash
P600,000
Advances from B
P20,000
Accounts Receivables 200,000
Trade payables
130,000
Loan receivable from
150,000
Other liabilities
220,000
A
Furnitures and
250,000
A, Capital (20%)
300,000
fixtures
Land
200,000
B, Capital (30%)
250,000
C, Capital (50%)
480,000
Total
P1,400,000
Total
P1,400,000
After payment of realization of the non-cash assets, payment of liabilities to creditors
amounting to P350,000 and payment of liquidation expenses amounting to P20,000,
partner A had a total interest of P80,000.
Determine the total proceeds from the realization.
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