As of December 31, 2021, the books of GOV Partnership showed the following balances: G – P400,000; O – P250,000; V – P50,000; Liabilities – P500,000; Cash – P55,000. The noncash assets include Accounts Receivable – V for P20,000. The partners share profits and losses in the ratio of 3:1:2. The partners decided to liquidate by installment after unfavorable results of operation for the last three years. Before the liquidation starts, the bookkeeper discovered unpaid bills amounting to P15,000 they scheduled payment immediately. In the first month, 50% of the noncash assets were realized for P500,000. Liquidation expenses of P10,000 and P350,000 of liabilities were paid. At the end of the first month, the available cash was paid to partners after setting aside P5,000 for contingencies. How much cash was available to partners?
As of December 31, 2021, the books of GOV Partnership showed the following balances: G – P400,000; O – P250,000; V – P50,000; Liabilities – P500,000; Cash – P55,000. The noncash assets include Accounts Receivable – V for P20,000. The partners share profits and losses in the ratio of 3:1:2. The partners decided to liquidate by installment after unfavorable results of operation for the last three years. Before the liquidation starts, the bookkeeper discovered unpaid bills amounting to P15,000 they scheduled payment immediately. In the first month, 50% of the noncash assets were realized for P500,000. Liquidation expenses of P10,000 and P350,000 of liabilities were paid. At the end of the first month, the available cash was paid to partners after setting aside P5,000 for contingencies. How much cash was available to partners?
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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As of December 31, 2021, the books of GOV Partnership showed the following balances: G – P400,000;
O – P250,000; V – P50,000; Liabilities – P500,000; Cash – P55,000. The noncash assets include Accounts Receivable – V for P20,000. The partners share profits and losses in the ratio of 3:1:2. The partners decided to liquidate by installment after unfavorable results of operation for the last three years. Before the liquidation starts, the bookkeeper discovered unpaid bills amounting to P15,000 they scheduled payment immediately. In the first month, 50% of the noncash assets were realized for P500,000. Liquidation expenses of P10,000 and P350,000 of liabilities were paid. At the end of the first month, the available cash was paid to partners after setting aside P5,000 for contingencies.
How much cash was available to partners?
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