On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts Receivable Inventory Furniture & fixtures, net Total Accounts Payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 120,000 790,000 165,000 350,000 175,000 790,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and aft certain assets are to be restated to their fair values as follows: How much will A and B receive as the final settlement of their partnership interests?

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts Receivable Inventory Furniture & fixtures, net Total Accounts Payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 120,000 790,000 165,000 350,000 175,000 790,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and aft certain assets are to be restated to their fair values as follows: How much will A and B receive as the final settlement of their partnership interests?

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 5CE

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5. In January 1, 2009, partners AAA, BBB and CCC, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership’s condensed balance sheet was as follows: Cash P 50,000 Other assets 250,000 P 300,000 Liabilities P 60,000 AAA, capital 80,000 CCC, capital 90,000 BBB, capital 70,000 Total P 300,000 On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe…
Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to liquidate. The condensed statement of financial position immediately prior to the liquidation shows the following: Cash P 400,000 Non-cash Assets 1,600,000 Liabilities 560,000 E, Loan 40,000 E, Capital 180,000 F, Capital 420,000 G, Capital 800,000 After paying liabilities to partnership creditors, cash of P830,000 is available for distribution to partners. Any…
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On January 1, 2009, partners AAA, BBB and CCC, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership’s condensed balance sheet was as follows:Cash P 50,000Other assets 250,000P 300,000Liabilities P 60,000AAA, capital 80,000CCC, capital 90,000BBB, capital 70,000Total P 300,000 On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner?AAA BBB CCC P 15,000 P 51,000 P 44,00040,000 45,000 35,00055,000 33,000 22,00060,000 36,000 24,000
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