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 installment 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 P 205,000 Expected Expenses 1* Sale | 2nd Sale Paid P 20,000 P 150,000 P 25,000 150,000 100,000 30,000 10,000 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 distributed to the partners. Determine the capital of May after the 1* installment sale 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; 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 installment 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 P 205,000 Expected Expenses 1* Sale | 2nd Sale Paid P 20,000 P 150,000 P 25,000 150,000 100,000 30,000 10,000 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 distributed to the partners. Determine the capital of May after the 1* installment sale of the Non-cash assets.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Transcribed Image Text: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 installment 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
1st Sale
2nd 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 distributed to the
partners.
Determine the capital of May after the 1st installment sale of the Non-cash assets.
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