Item Nos. 17 and 18 are based on the following information:The balance sheet for the partnership of Lia, Mia, and Pia, who shareprofits in the ratio of 2:1:1, respectively, shows the following balances justbefore liquidation:CashP 12,000LiabilitiesP 20,000Noncash Assets-59,500Lia Capital ---22,000Mia Capital15,500Pia Capital---14,000P 71,500P 71,500On the first month of liquidation, certain assets were sold for P 32,000.Liquidation expenses of P 1,000 were paid and additional liquidation expensesin the future are still anticipated. Liabilities were paid amounting to P 5,400 andsufficient cash was retained to ensure the payment to creditors before makingpayments to the partners. On the first payment to partners, Lia receivedP 6,250.17. The total cash distributed to the partners in the first installment was:a. P 12,500.C. P 25,000.b. P 20,000.d. P 37,600.18. The amount of cash withheld for anticipated liquidation expenses andunpaid liabilities was:a. P 14,600.C.P 17,600.b. P 15,600.d. P 20,600.

Here discuss about the details of total cash distribution which are made to the partners at the time…

17. The total cash distributed to the partners in the first installment was: a. P 12,500. C. P 25,000. b. P 20,000. d. P 37,600. 18. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities was: a. P 14,600. C. P 17,600. b. P 15,600. d. P 20,600.

17. The total cash distributed to the partners in the first installment was: a. P 12,500. C. P 25,000. b. P 20,000. d. P 37,600. 18. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities was: a. P 14,600. C. P 17,600. b. P 15,600. d. P 20,600.

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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