Alpha, Beta, and Gamma are partners who have capital balances of P480,000, P500,000 and P180,000 respectively. P/L is distributed in the ratio of 4:2:1. Beta received P260,000 as a result of liquidating the partnership when 60% of the noncash assets of the partnership is realized. The partnership has total assets totaling to P500,000 including P50,000 cash before liquidation. The partnership also incurred P35,000 liquidation expenses and withheld P28,000 for the unpaid liabilities of the partnership.
Alpha, Beta, and Gamma are partners who have capital balances of P480,000, P500,000 and P180,000 respectively. P/L is distributed in the ratio of 4:2:1. Beta received P260,000 as a result of liquidating the partnership when 60% of the noncash assets of the partnership is realized. The partnership has total assets totaling to P500,000 including P50,000 cash before liquidation. The partnership also incurred P35,000 liquidation expenses and withheld P28,000 for the unpaid liabilities of the partnership.
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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What is the loss on realization of noncash assets?
Transcribed Image Text:Alpha, Beta, and Gamma are partners who have capital balances of P480,000, P500,000 and P180,000
respectively. P/L is distributed in the ratio of 4:2:1. Beta received P260,000 as a result of liquidating the
partnership when 60% of the noncash assets of the partnership is realized. The partnership has total assets
totaling to P500,000 including P50,000 cash before liquidation. The partnership also incurred P35,000
liquidation expenses and withheld P28,000 for the unpaid liabilities of the partnership.
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