On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total 80,000 Accounts payable 120,000 240,000 Payable to B 480,000 A, Capital (20%) 1,200,000 B, Capital (30%) 2,000,000 C, Capital (50%) 80,000 400,000 600,000 800,000 Information on the conversion of non-cash assets is as follows: • 200,000 was collected on accounts receivable; the balance is uncollectible. P280,000 was received for the entire inventory. • The equipment was sold for P1,000,000. P8,000 liquidation expenses were paid. How much did C receive from the settlement of his interest in the partnership?

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total 80,000 Accounts payable 120,000 240,000 Payable to B 480,000 A, Capital (20%) 1,200,000 B, Capital (30%) 2,000,000 C, Capital (50%) 80,000 400,000 600,000 800,000 Information on the conversion of non-cash assets is as follows: • 200,000 was collected on accounts receivable; the balance is uncollectible. P280,000 was received for the entire inventory. • The equipment was sold for P1,000,000. P8,000 liquidation expenses were paid. How much did C receive from the settlement of his interest in the partnership?

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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