Homework Help is Here – Start Your Trial Now!
Business
Accounting
The partnership which is being liquidated by installment method has a final cash balance of P100,000 after selling all the non-cash assets. The Profit and Loss ratio is 5:3:2.  Partners' capital accounts are as follow:  A, Capital  - P70,000; B, Capital - P40,000; C, Capital - (P10,000). C is already insolvent. What is the distribution of cash to all the partners? a.) A - P33,333 B - P33,333 C - P33,333 b.) A - P50,000; B - P30,000; C - P20,000 c.) A - P50,000; B - P50,000; C - None d.) A - P63,750 B - P36,250 C - None   SHOW COMPLETE SOLUTION

The partnership which is being liquidated by installment method has a final cash balance of P100,000 after selling all the non-cash assets. The Profit and Loss ratio is 5:3:2.  Partners' capital accounts are as follow:  A, Capital  - P70,000; B, Capital - P40,000; C, Capital - (P10,000). C is already insolvent. What is the distribution of cash to all the partners? a.) A - P33,333 B - P33,333 C - P33,333 b.) A - P50,000; B - P30,000; C - P20,000 c.) A - P50,000; B - P50,000; C - None d.) A - P63,750 B - P36,250 C - None   SHOW COMPLETE SOLUTION

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

The partnership which is being liquidated by installment method has a final cash balance of P100,000 after selling all the non-cash assets. The Profit and Loss ratio is 5:3:2.  Partners' capital accounts are as follow:  A, Capital  - P70,000; B, Capital - P40,000; C, Capital - (P10,000). C is already insolvent. What is the distribution of cash to all the partners?

a.) A - P33,333 B - P33,333 C - P33,333
b.) A - P50,000; B - P30,000; C - P20,000
c.) A - P50,000; B - P50,000; C - None
d.) A - P63,750 B - P36,250 C - None
 
SHOW COMPLETE SOLUTION
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS