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ute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were realized. After paying liabili

ute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were realized. After paying liabili

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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INSTALLMENT LIQUIDATION 

Julia, Kristine and James divide profits and losses equally. Just prior to liquidating their partnership, their respective account balances were P50,000, P96,000 and P74,000 as of January 31, 2018. Their total assets included cash of P5,000 and loan to Julia for P10,000, while their total liabilities of P90,000 included loan from James for P30,000.

The partners agreed to distribute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were realized. After paying liabilities and liquidation expenses of P6,000, the partnership had P140,000 left.


1. How much will Julia receive in the 1st cash distribution?

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