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The partnership balance sheet shows cash of P5,000, non-cash assets of P14,000, and no liabilities. Assuming no liquidation expenses, what safe payment could be made? A. P1,000 to Allen, P2,500 to Branden, and P1,500 to Caylin B. P18,000 to Branden only C. P5,000 to Branden only D. P5,000 split between Branden & Caylin by a ratio of 5/8 and 3/8, respectively.

The partnership balance sheet shows cash of P5,000, non-cash assets of P14,000, and no liabilities. Assuming no liquidation expenses, what safe payment could be made? A. P1,000 to Allen, P2,500 to Branden, and P1,500 to Caylin B. P18,000 to Branden only C. P5,000 to Branden only D. P5,000 split between Branden & Caylin by a ratio of 5/8 and 3/8, respectively.

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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18. Allen, Branden & Caylin are in the process of liquidating their partnership. They have the following capital balances and profit and loss percentages: Capital Balance Profit/Loss % Allen 5,000 debit 20% Branden 18,000 credit 50% Caylin 6,000 credit 30% The partnership balance sheet shows cash of P5,000, non-cash assets of P14,000, and no liabilities. Assuming no liquidation expenses, what safe payment could be made? A. P1,000 to Allen, P2,500 to Branden, and P1,500 to Caylin B. P18,000 to Branden only C. P5,000 to Branden only D. P5,000 split between Branden & Caylin by a ratio of 5/8 and 3/8, respectively.
Transcribed Image Text:18. Allen, Branden & Caylin are in the process of liquidating their partnership. They have the following capital balances and profit and loss percentages: Capital Balance Profit/Loss % Allen 5,000 debit 20% Branden 18,000 credit 50% Caylin 6,000 credit 30% The partnership balance sheet shows cash of P5,000, non-cash assets of P14,000, and no liabilities. Assuming no liquidation expenses, what safe payment could be made? A. P1,000 to Allen, P2,500 to Branden, and P1,500 to Caylin B. P18,000 to Branden only C. P5,000 to Branden only D. P5,000 split between Branden & Caylin by a ratio of 5/8 and 3/8, respectively.
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