The partnership of Ray, May and Jay is to be liquidated. Their books reflect beginning cash balances of P200,000;Liabilities of P350,000, Ray Capital (30%), P300,000, May Capital (25%), P450,000 and Jay Capital, (45%), P350,000.The partnership is to be liquidated on an instaliment basis. The details of the first two installment sales of the partnershipfollow:Expectedof Non-cash of Non-cash Liquidating Liabilities LiquidatingExpensesP 25,00030,000Book Value Sales Price1* Sale2d SaleAssets sold Assets sold ExpensesP 205,00030,000P 250,000100,000PaidP 20,000 P 150,000150,00010,000Cash is distributed to the partners as it becomes available. In the 3rd installment sale, P200,000 of the NCAS are sold forP150,000, P30,000 of the liabilities and P10,000 liquidating expenses are paid; and P130,000 cash is distnbuted to thepartners.Determine the capital of May after the 1" installment sale of the Non-cash assets.

Answered: Image /qna-images/answer/bec046b5-fab5-4a38-9639-bd38a3a890a2.jpg

The partnership of Ray, May and Jay is to be liquidated Their books reflect beginning cash balances of P200,000; Liabities of P350,000, Ray Capital (30%), P300,000, May Capital (25%), P450,000 and Jay Capital, (45%), P350,000. The partnership is to be liquidated on an instaliment basis. The details of the first two installment sales of the partnership follow Book Value Sales Price of Non cash of Non-cash Liquidating Liabilities Liquidating Assets sold Assets sold Expenses P 250,000 100,000 Expected Paid Expenses 1 Sale 2 Sale P 205,000 30,000 P 20,000 P 150,000 P 25,000 10,000 150,000 30,000 Cash is distributed to the partners as it becomes available. In the 3rd installment sale, P200,000 of the NCAS are sold for P150,000, P30,000 of the liabilities and P10,000 liquidating expenses are paid, and P130,000 cash is distnbuted to the partners. Determine the captal of May after the 1" instalment sake of the Non-cash assets.

The partnership of Ray, May and Jay is to be liquidated Their books reflect beginning cash balances of P200,000; Liabities of P350,000, Ray Capital (30%), P300,000, May Capital (25%), P450,000 and Jay Capital, (45%), P350,000. The partnership is to be liquidated on an instaliment basis. The details of the first two installment sales of the partnership follow Book Value Sales Price of Non cash of Non-cash Liquidating Liabilities Liquidating Assets sold Assets sold Expenses P 250,000 100,000 Expected Paid Expenses 1 Sale 2 Sale P 205,000 30,000 P 20,000 P 150,000 P 25,000 10,000 150,000 30,000 Cash is distributed to the partners as it becomes available. In the 3rd installment sale, P200,000 of the NCAS are sold for P150,000, P30,000 of the liabilities and P10,000 liquidating expenses are paid, and P130,000 cash is distnbuted to the partners. Determine the captal of May after the 1" instalment sake of the Non-cash assets.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 11BCRQ

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