IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A 500,000 Payable to B 1,000,000 000

Principles of Accounting Volume 1
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Author:OpenStax
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Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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How much cash was received by A at the end of partnership liquidation?

IV On December 31, 2020, the Statement of Financial Position of ABC Partnership
with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the
following data:
Cash 1,000,000
Other Liabilities 2,000,000
Receivable from A 500,000
Payable to B 1,000,000
Other non cash assets 2,000,000 Payable to C 100,000
A, Capital 700,000
B, Capital (650,000)
C, Capital 350,000
On January 1, 2021, the partners decided to liquidate the partnership. All partners are
legally declared to be personally insolvent. The other non cash assets were sold for
P1,500,000. Liquidation expenses amounting to P100,000 were incurred.
Transcribed Image Text:IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash 1,000,000 Other Liabilities 2,000,000 Receivable from A 500,000 Payable to B 1,000,000 Other non cash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) C, Capital 350,000 On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non cash assets were sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred.
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