What is the amount of cash received by A on February 28, 2021? P75,000 P25,000 P50,000 None
What is the amount of cash received by A on February 28, 2021? P75,000 P25,000 P50,000 None
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
What is the amount of cash received by A on February 28, 2021?
P75,000
P25,000
P50,000
None
Transcribed Image Text:On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2
is presented as follows:
Total Liabilities
1,400,000 A, Capital
В, Саpital
C, Capital
Cash
P1,600,000
P2,000,000
100,000
500,000
400,000
Noncash asset
On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally
declared to be personally insolvent.
As of January 31, 2021, the following transactions occured:
Noncash assets with a book value P1,000,000 were sold at a gain of P100,000.
• Liquidation expenses for the month of January amounting to P50,000 were paid.
It is estimated that liquidation expenses amounting to P150,000 will be incured for the month of
February, 2021.
20% of the liabilities to third persons were settled.
Available cash were distributed to the partners.
As of February 28, 2021, the following transactions occured:
Remaining noncash assets were sold at aloss of P100,000.
The final liquidation expenses for the month of February amounted to P100,000.
The remaining liabilities to third persons were settled at a compromise amount of P1,500,000.
Remaining cash were finally distributed to the partners.
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