How much is the proceeds from the sale of non-cash assets in January 2022?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEB
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Question
On December 31 2021, the statement of financial position of ABC Partnership shows the following data with profit or loss sharing ratio of 2.3:5
Cash
P15,000,000
Liabilities to others P20,000,000
Other non-cash asset 40,000,000 AA, Capital
15,000,000
BB, Capital
12,500,000
CC, Capital
7,500,000
On January 1, 2022, the partners decided to wind up the partnership affairs. During the winding up, liquidation expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during January. 40% of total liabilities were also paid during January, P3,000,000 cash was withheld during January for future liquidation expenses. On January 31, 2022, partner AA received P10,000,000.
How much is the proceeds from the sale of non-cash assets in January 2022?
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