A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities P 144,000 240,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P
A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities P 144,000 240,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 39P
Related questions
Question
Transcribed Image Text:A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in
the ratio of 2:1:1, shows the following balances just before liquidation:
Assets
Cash
Other assets
Liabilities and Equity
Liabilities
240,000
P 144,000
714,000
John, capital
264,000
186,000
Paul, capital
Ryan, capital
168,000
In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of
P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and
sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners,
John receives P60,000.
How much is the theoretical losses in the first month of liquidation?
P
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning