What is the amount of cash received by partner C on January 31, 2021?P260,000P240,000P300,000P350,000 On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2is presented as follows:Total Liabilities1,400,000 A, CapitalВ, СаpitalC, CapitalCashP1,600,000P2,000,000100,000500,000400,000Noncash assetOn January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legallydeclared to be personally insolvent.As of January 31, 2021, the following transactions occured:Noncash assets with a book value P1,000,000 were sold at a gain of P100,000.• Liquidation expenses for the month of January amounting to P50,000 were paid.It is estimated that liquidation expenses amounting to P150,000 will be incured for the month ofFebruary, 2021.20% of the liabilities to third persons were settled.Available cash were distributed to the partners.As of February 28, 2021, the following transactions occured:Remaining noncash assets were sold at aloss of P100,000.The final liquidation expenses for the month of February amounted to P100,000.The remaining liabilities to third persons were settled at a compromise amount of P1,500,000.Remaining cash were finally distributed to the partners.

Sale Proceeds 1,100,000 Less: Liquidation Expenses 50,000 Less: Settlement…

Answered: What is the amount of cash received by…

Business

Accounting

What is the amount of cash received by partner C on January 31, 2021? P260,000 P240,000 P300,000 P350,000

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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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

What is the amount of cash received by partner C on January 31, 2021?

P260,000
P240,000
P300,000
P350,000

On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2
is presented as follows:
Total Liabilities
1,400,000 A, Capital
В, Саpital
C, Capital
Cash
P1,600,000
P2,000,000
100,000
500,000
400,000
Noncash asset
On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally
declared to be personally insolvent.
As of January 31, 2021, the following transactions occured:
Noncash assets with a book value P1,000,000 were sold at a gain of P100,000.
• Liquidation expenses for the month of January amounting to P50,000 were paid.
It is estimated that liquidation expenses amounting to P150,000 will be incured for the month of
February, 2021.
20% of the liabilities to third persons were settled.
Available cash were distributed to the partners.
As of February 28, 2021, the following transactions occured:
Remaining noncash assets were sold at aloss of P100,000.
The final liquidation expenses for the month of February amounted to P100,000.
The remaining liabilities to third persons were settled at a compromise amount of P1,500,000.
Remaining cash were finally distributed to the partners.

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