If a cash priority program is prepared, which partner is paid first and how much is the total payment to that partner before all partners will share on the available cash based on their profit and loss ratios?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Partners A, B and C decided to liquidate their partnership. A summary of the partnership's
statement of financial position is shown below:
50,000
1,200,000
1,250,000
Cash
Noncash assets
Total
Accounts payable
Payable to A
A, Capital (50%)
B, Capital (30%)
C, Capital (20%)
100,000
50,000
540,000
360,000
200,000
1,250,000
Total
If a cash priority program is prepared, which partner is paid first and how much is the total
payment to that partner before all partners will share on the available cash based on their profit
and loss ratios?
а. А, Р20,000
b. В, Р96,000
с. В, Р90,000
d. B, P60,000
Transcribed Image Text:Partners A, B and C decided to liquidate their partnership. A summary of the partnership's statement of financial position is shown below: 50,000 1,200,000 1,250,000 Cash Noncash assets Total Accounts payable Payable to A A, Capital (50%) B, Capital (30%) C, Capital (20%) 100,000 50,000 540,000 360,000 200,000 1,250,000 Total If a cash priority program is prepared, which partner is paid first and how much is the total payment to that partner before all partners will share on the available cash based on their profit and loss ratios? а. А, Р20,000 b. В, Р96,000 с. В, Р90,000 d. B, P60,000
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