The statement of financial position of L, M, and N just before liquidationshows the following:CashP 20,000240,000Non-cash AssetsAccounts PayableN, Loan40,00040,000L, Capital62,000M, Capital88,00030,000N, CapitalL, M, and N share profits and losses in the ratio of 3:2:5, respectively. Thenon-cash assets were sold for P160,000.10.How much cash is available for distribution topartners in settlement of their capital balances?

Name: The statement of financial position of L, M, and N just before liquid
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Description: The statement of financial position of L, M, and N just before liquidationshows the following:CashP 20,000240,000Non-cash AssetsAccounts PayableN, Loan40,00040,000L, Capital62,000M, Capital88,00030,000N, CapitalL, M, and N share profits and losses i

>In the event of dissolution of a partnership, the following steps are taken for payment:[1] Non…

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E The statement of financial position of L, M, and N just before liquidat shows the following Cash P 20,000 240,000 Non-cash Assets Accounts Payable 40,000 N, Loan 40,000 L, Capital 62,000 88,000 M, Capital N, Capital 30,000 L, M, and N share profits and losses in the ratio of 3:2:5, respectively. The non-cash assets were sold for P160,000. How much cash is available for distribution to partners in settlement of their capital balances?

E The statement of financial position of L, M, and N just before liquidat shows the following Cash P 20,000 240,000 Non-cash Assets Accounts Payable 40,000 N, Loan 40,000 L, Capital 62,000 88,000 M, Capital N, Capital 30,000 L, M, and N share profits and losses in the ratio of 3:2:5, respectively. The non-cash assets were sold for P160,000. How much cash is available for distribution to partners in settlement of their capital balances?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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