Case 2: Installment liquidation Done will be liquidated on installment basis. Cash distributions to the partners will be made as cash becomes available. In the first month of the liquidation process, the non-cash assets were realized as follows: a. Half of the accounts receivable was collected. Of the remaining half, P10,000 accounts are deemed worthless. b. Seventy-five percent of the inventory was sold at 80% of cost. c. Equipment with carrying amount of P200,000 was sold for P185,000. d. P12,000 liquidation expenses were paid. Additional P5,000 liquidation expenses are expected to be incurred in subsequent periods. Requirement: Compute for the cash distributions to the partners.

Case 2: Installment liquidation Done will be liquidated on installment basis. Cash distributions to the partners will be made as cash becomes available. In the first month of the liquidation process, the non-cash assets were realized as follows: a. Half of the accounts receivable was collected. Of the remaining half, P10,000 accounts are deemed worthless. b. Seventy-five percent of the inventory was sold at 80% of cost. c. Equipment with carrying amount of P200,000 was sold for P185,000. d. P12,000 liquidation expenses were paid. Additional P5,000 liquidation expenses are expected to be incurred in subsequent periods. Requirement: Compute for the cash distributions to the partners.

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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