Compute for the amount to be received by GHI.

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 9E
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8. 

Account balances for the ABC, DEF, and GHI partnership on June 1, 2022 are as follows:
P 21,000
P 80,000
Cash
Accounts receivable
63,000
50,000
Inventory
Equipment
ABC loan
120,000
150,000
15,000
Accounts payable
Notes payable
ABC, capital (40%)
DEF, capital (60%)
GHI, capital (10%)
43,600
150,000
45,400
The partners have decided to liquidate the business. Activities for the first month of
liquidation are as follows:
a. ABC is short of funds and the partners agree to charge her loan to her capital
account.
b. P40,000 is collected on the accounts receivable; P4,000 is written off as
uncollectible.
c. Half the inventory is sold for P50,000.
d. Equipment with a book value of P60,000 is sold for P55,000.
e. The P50,000 bank note plus P600 accrued interest is paid in full.
f. The accounts payable are paid.
g. Liquidation expenses of P2,000 are paid.
h. Except for a P15,000 contingency fund, all available cash is distributed to
partners at the end of June.
Compute for the amount to be received by GHI.
Transcribed Image Text:Account balances for the ABC, DEF, and GHI partnership on June 1, 2022 are as follows: P 21,000 P 80,000 Cash Accounts receivable 63,000 50,000 Inventory Equipment ABC loan 120,000 150,000 15,000 Accounts payable Notes payable ABC, capital (40%) DEF, capital (60%) GHI, capital (10%) 43,600 150,000 45,400 The partners have decided to liquidate the business. Activities for the first month of liquidation are as follows: a. ABC is short of funds and the partners agree to charge her loan to her capital account. b. P40,000 is collected on the accounts receivable; P4,000 is written off as uncollectible. c. Half the inventory is sold for P50,000. d. Equipment with a book value of P60,000 is sold for P55,000. e. The P50,000 bank note plus P600 accrued interest is paid in full. f. The accounts payable are paid. g. Liquidation expenses of P2,000 are paid. h. Except for a P15,000 contingency fund, all available cash is distributed to partners at the end of June. Compute for the amount to be received by GHI.
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