The total of the partners’, capital accounts was P110,000 before the recognition of partnership asset revaluation in preparation for the final withdrawal of a partner whose profit or loss sharing is 2/10. He was paid P28,000 by the firm in final settlement for his interest. The remaining partners’ capital accounts, excluding their share of the assets revaluation, totaled P90,000 after his withdrawal. The total asset revaluation of the firm agreed upon was: P40,000 P28,000 P 8,000 P20,000
The total of the partners’, capital accounts was P110,000 before the recognition of
P40,000
P28,000
P 8,000
P20,000
A(50), B(25) & C(25) have capital balances of P60,000, P20,000 and P50,000 each respectively. The partnership also has liabilities of P20,000. In the first installment sale, P50,000 of the non-cash assets were sold for P30,000. The partnership then paid 60% of their liabilities, incurred liquidating expenses of P10,000 and distributed cash to the partners. If A receives P10,000, how much was the total cash withheld by the partnership?
28,000
18,000
23,000
20,000
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