As of December 31, 2020, the books of ABC partnership showed capital balances of: A, P60,000; B,P30,000 and C, P5,000. The partnership's profit or loss ratio was 5:3:2, respectively. The partners decidedto liquidate and they sold all non-cash assets for P40,000. After the settlement of all liabilities amounting toP10,000, they still have cash of P20,000 left for distribution. Assuming that any capital debit balance isuncollectible, the share of A in the distribution of P20,000 cash would be:

A 60000 B 30000 C 5000 Profit-sharing ratio 5:3:2

Answered: As of December 31, 2020, the books of…

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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As of December 31, 2020, the books of ABC partnership showed capital balances of: A, P60,000; B, P30,000 and C, P5,000. The partnership's profit or loss ratio was 5:3:2, respectively. The partners decided to liquidate and they sold all non-cash assets for P40,000. After the settlement of all liabilities amounting to P10,000, they still have cash of P20,000 left for distribution.
As of December 31, 2020, the books of ABC partnership showed capital balances of A 60,000; B 30,000 and C 5,000. The partnership's profit or loss ratio was 5:3:2, respectively. The partners decided to liquidate and they sold all non-cash assets for 40,000. After the settlement of all liabilities amounting to 10,000, they still have cash of 20,000 left for distribution. Assuming that any capital debit balance is uncollectible, determine payment to partners A, B, and C at the end of liquidation.
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1. As of December 31, 2022, the books of AME Partnership showed capital balances of A, P40,000; M, P25,000; E P50,000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in distribution of the P28,000 cash would be: A. P18,000 B. P0 C. P19,000 D. P17,800 2. Cloe, Doe and Lida are partners with capital balances on December 31, 2021 of P300,000, P300,000 and P200,000 respectively. Profits are shared equally. Lida wishes to withdraw and it is agreed that she is to take certain furniture and fixtures with second hand value of P50,000 which are carried on the books at P65,000. Brand new, the furniture and fixtures may cost, P80,000. How much is the value of the note that Lida will get from the…
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On December 31, 2020, the Statement of Financial Position of EYBISI Partnership with profit or loss ratio of 6:1:3 of partners Anna, Belle, and Cassie respectively, revealed the following data: Cash - 1,000,000 Other Liabilities - 2,000,000 Receivable from Anna - 500,000 Payable to Belle - 1,000,000 Other non-cash assets - 2,000,000 Payable to Cassie - 100,000 Anna, Capital 700,000 Belle, Capital (650,000) Cassie, Capital 350,000 On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non-cash assets were sold for $1,500,000. Liquidation expenses amounting to $100,000 were incurred. a. What amount of cash was received by Belle at the end of partnership…

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