A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P190,000 Non-cash assets 300,000 A, Capital 30,000 B, Capital 40,000 C, Capital 50,000 Total P310,000 Total P310,000 A, B and C share profits and losses in the ratio of 3:4:3. Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A is solvent up to P3,000 while B and C are both solvent and able to cover deficit in their capital accounts, if any. What amount of cash should be paid to partner C
A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P190,000 Non-cash assets 300,000 A, Capital 30,000 B, Capital 40,000 C, Capital 50,000 Total P310,000 Total P310,000 A, B and C share profits and losses in the ratio of 3:4:3. Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A is solvent up to P3,000 while B and C are both solvent and able to cover deficit in their capital accounts, if any. What amount of cash should be paid to partner C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A, B and C
|
Cash |
P10,000 |
Liabilities |
P190,000 |
|
Non-cash assets |
300,000 |
A, Capital |
30,000 |
|
B, Capital |
40,000 |
||
|
C, Capital |
50,000 |
||
|
Total |
P310,000 |
Total |
P310,000 |
A, B and C share
What amount of cash should be paid to partner C
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