On June 11, 2020, A, B, and C form a partnership investing cash of P 15,000, P 13,500, and P 4,200, respectively. The partners share profits 3:2:2 and on August 30, 2020, they have cash of P 1,000, and other assets of P 47,500; liabilities are P 25,600. On this date they decide to go out of business and sell all the assets for P 30,000. C has personal assets of P 1,500 that may, if necessary, be used to meet partnership obligations. How much should be distributed to B upon liquidation of the partnership?
On June 11, 2020, A, B, and C form a partnership investing cash of P 15,000, P 13,500, and P 4,200, respectively. The partners share profits 3:2:2 and on August 30, 2020, they have cash of P 1,000, and other assets of P 47,500; liabilities are P 25,600. On this date they decide to go out of business and sell all the assets for P 30,000. C has personal assets of P 1,500 that may, if necessary, be used to meet partnership obligations. How much should be distributed to B upon liquidation of the partnership?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 20P
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On June 11, 2020, A, B, and C form a partnership investing cash of P 15,000, P 13,500, and P 4,200, respectively. The partners share profits 3:2:2 and on August 30, 2020, they have cash of P 1,000, and other assets of P 47,500; liabilities are P 25,600. On this date they decide to go out of business and sell all the assets for P 30,000. C has personal assets of P 1,500 that may, if necessary, be used to meet partnership obligations. How much should be distributed to B upon liquidation of the partnership?
On December 31, 2020, the accounting records of the ABC partnership included the following information:
A, drawing (debit balance) P 24,000 A, capital P 123,000
B, drawing (debit balance) 9,000 B, capital 100,500
C, loan 30,000 C, capital 108,000
Total assets amounted to P 478,500, including P 52,500 cash, and liabilities totaled P 150,000. The partnership was liquidated on December 31, 2020, and B received P 83,250 cash pursuant to the liquidation. A, B, and C share net income and losses in a 5:3:2 ratio respectively. How much should A and C receive upon liquidation of the partnership?
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