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The partnership of H, M and R is liquidating and the ledger shows the following: Dr. Cash- P80,000 Dr. Inventories- P100,000 Cr. Accounts payable- P60,000 Cr. H, Capital (50%)- P45,000 Cr. M, Capital (25%)- P40,000 Cr. R, Capital (25%)- P35,000 If all cash available is distributed immediately:   a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each

The partnership of H, M and R is liquidating and the ledger shows the following: Dr. Cash- P80,000 Dr. Inventories- P100,000 Cr. Accounts payable- P60,000 Cr. H, Capital (50%)- P45,000 Cr. M, Capital (25%)- P40,000 Cr. R, Capital (25%)- P35,000 If all cash available is distributed immediately:   a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each

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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The partnership of H, M and R is liquidating and the ledger shows the following:

Dr. Cash- P80,000
Dr. Inventories- P100,000
Cr. Accounts payable- P60,000
Cr. H, Capital (50%)- P45,000
Cr. M, Capital (25%)- P40,000
Cr. R, Capital (25%)- P35,000

If all cash available is distributed immediately:
 
a. M should get P15,000 and R should get P5,000
b. M should get P12,500, and R should get P7,500
c. each partner should get P6,667 each
d. each partner should get P26,667 each
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