Case #1: Lump-sum liquidation All the non-cash assets are sold for P50,000. Requirement: Determine the amounts distributable to A and B in the liquidation. Case #2: Installment liquidation The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for P45,000. Requirement: Determine the amounts distributable to A and B after the first installment sale.
Case #1: Lump-sum liquidation All the non-cash assets are sold for P50,000. Requirement: Determine the amounts distributable to A and B in the liquidation. Case #2: Installment liquidation The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for P45,000. Requirement: Determine the amounts distributable to A and B after the first installment sale.
Chapter21: Partnerships
Section: Chapter Questions
Problem 65P
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Question
Transcribed Image Text:3. Use the following information for the next two cases:
A and B decided to liquidate their partnership. The
partnership's
records
show
the
following
information:
Cash
Non-cash assets
80,000
Total assets
s0,000
Liabilities
15,000
Loan payable to Partner A 10,000
Loan payable to Partner B 17,000
A, capital (80%)
B, capital (20%)
Total liabilities and equity
20,000
18,000
80,000
Case #1: Lump-sum liquidation
All the non-cash assets are sold for P50,000.
Requirement: Determine the amounts distributable to
A and B in the liquidation.
Case #2: Installment liquidation
The non-cash assets
are sold in installments.
Settlement of partners' claims sha
installments as cash becomes available. In the first
be
ade in
sale, three-fourths (3/4) of the non-cash assets are
sold for P45,000.
Requirement: Determine the amounts distributable to
A and B after the first installment sale.
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