Assets Liabilities & Capital P 200,000 225,000 175,000 P 600,000 Cash Other Assets P 50,000 Liabilities 550,000 Pop, capital Loli, capital P 600,000 Total Liabilities & Capital Total Assets Partners Pop and Loli share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000 creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P 100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225.000.
Assets Liabilities & Capital P 200,000 225,000 175,000 P 600,000 Cash Other Assets P 50,000 Liabilities 550,000 Pop, capital Loli, capital P 600,000 Total Liabilities & Capital Total Assets Partners Pop and Loli share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000 creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P 100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225.000.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 62BE: Brief ExerciseRatio Analysis Valiant Corporation has $1,800,000 in total liabilities, $800,000 of...
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Question
On June 1, 2021 (before the liquidation) – the balance sheet/statement of financial position for Pop and Loli Partnership is as follows in the given picture.
Required:
1. Prepare a schedule of safe payments on every cash distribution made.
2. How much cash should Loli receive in June?
3. How much cash should Pop receive in July?
4. How much cash should Loli and Pop receive in August?
Transcribed Image Text:Assets
Liabilities & Capital
P 200,000
225,000
175,000
P 600,000
Cash
Other Assets
P 50,000 Liabilities
550,000 Pop, capital
Loli, capital
P 600,000 Total Liabilities & Capital
Total Assets
Partners Pop and Loli share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for
P180,000 creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P 100,000 were sold
for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining
assets were sold for P225,000.
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