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a. The total restricted interest in the month of April amounted to: b. The cash received by Lawrence in the 1st month amounted to:

a. The total restricted interest in the month of April amounted to: b. The cash received by Lawrence in the 1st month amounted to:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. The total restricted interest in the month of April amounted to:
b. The cash received by Lawrence in the 1st month amounted to: 

Lawrence, Mary Joy, and Nathaniel, partners in Jewelry Store, decided to liquidate their partnership on March 31, 2018. At this time, the partnership had cash of P315,000, Non-cash assets of P2.1M excluding receivable from one of the partners. They have also substantial liabilities. The partner's capital balances, loan balances profit/loss percentages are as follows: Lawrence Mary Joy Nathaniel Capital P360,000 P285,000 P390,000 Loan (debit) (45,000) (60,000) P/L ratio 50% 25% 25% The transactions for the month of April, May and June are summarized below: April May June Proceeds from realization of non-cash assets: April – BV sold – 70% P1,360,000 May – BV sold – 20% P350,000 June - balance P180,000 Payment of liabilities 840,000 300,000 Paid balance Liquidation expenses 10,000 12,000 15,000 Payment to partners P160,000 P340,000 All cash left
Transcribed Image Text:Lawrence, Mary Joy, and Nathaniel, partners in Jewelry Store, decided to liquidate their partnership on March 31, 2018. At this time, the partnership had cash of P315,000, Non-cash assets of P2.1M excluding receivable from one of the partners. They have also substantial liabilities. The partner's capital balances, loan balances profit/loss percentages are as follows: Lawrence Mary Joy Nathaniel Capital P360,000 P285,000 P390,000 Loan (debit) (45,000) (60,000) P/L ratio 50% 25% 25% The transactions for the month of April, May and June are summarized below: April May June Proceeds from realization of non-cash assets: April – BV sold – 70% P1,360,000 May – BV sold – 20% P350,000 June - balance P180,000 Payment of liabilities 840,000 300,000 Paid balance Liquidation expenses 10,000 12,000 15,000 Payment to partners P160,000 P340,000 All cash left
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