A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities P 144,000 240,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P

A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities P 144,000 240,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P

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 balance sheet for the partnership of Suzy, Millette and Myra, who share profits in the ratio of 50:25:25, shows the following balance just before liquidation: Cash P 162,000 Suzy, capital (50%) P 297,000 Other assets 803,250 Millette, capital (25%) 209,500 Liabilities 269,750 Myra, capital (25%) 189,000 On the first month of liquidation, certain assets with book value of P500,000 were sold for P432,000. Liquidation expenses of P13,500 are paid, and additional liquidation expenses are anticipated. Liabilities are paid amounting to P72,900 and sufficient cash is retained to insure the payment to creditors before making payments to partners. On the first payment to partners, Suzy receives P84,375. What is the amount of cash withheld for anticipated liquidation expenses? Group of answer choices 197,100 40,500 0 237,600
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