JCA Partnership is entering into liquidation and you are given the following account balances:Cash1,100,000775,0006,750,000LiabilitiesLoan from ANoncash asset150,000J, capital (20%)1,275,000C, capital (20%)1,625,0003.375,000A, capital (60%)Total liab, and capitalTotal Asset7.525.0007.525.000During June, noncash asset with a book value of P1,875,000 were sold for P1,600,000. JCA paidP175,000 for the liquidation expenses it incurred and it also paid its liabilities to outsider creditors.However, creditors whose account balances amount to P150,000 decided to condone JCA'sliabilities. % of the cash received from the sale of noncash assets were distributed to the partners.What is A's interest after the first cash distribution?

JCA Partnership is entering into liquidation and the balance sheet of the partnership is given to…

Answered: What is A's interest after the first…

Business

Accounting

What is A's interest after the first cash distribution?

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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Question

JCA Partnership is entering into liquidation and you are given the following account balances:
Cash
1,100,000
775,000
6,750,000
Liabilities
Loan from A
Noncash asset
150,000
J, capital (20%)
1,275,000
C, capital (20%)
1,625,000
3.375,000
A, capital (60%)
Total liab, and capital
Total Asset
7.525.000
7.525.000
During June, noncash asset with a book value of P1,875,000 were sold for P1,600,000. JCA paid
P175,000 for the liquidation expenses it incurred and it also paid its liabilities to outsider creditors.
However, creditors whose account balances amount to P150,000 decided to condone JCA's
liabilities. % of the cash received from the sale of noncash assets were distributed to the partners.
What is A's interest after the first cash distribution?

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