As of December 31, 2021, the books of TWO partnership showed capital balances of: Tim - P 40,000, Wina - P 25,000, and Oca - P 5,000. The partners' profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P 37,000. After settlement of all liabilities amounting to P 12,000, they still have cash of P 28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of Tim in the distribution of P 28,000 cash would be:

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
icon
Related questions
Question

As of December 31, 2021, the books of TWO partnership showed capital balances of: Tim - P 40,000, Wina - P 25,000, and Oca - P 5,000. The partners' profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P 37,000. After settlement of all liabilities amounting to P 12,000, they still have cash of P 28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of Tim in the distribution of P 28,000 cash would be: 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Liquidation of Companies
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
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT