The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The gain on realization will be charged to Ali capital is----- O a. 20000 O b. 25000 O c. 15000 O d. 12000

The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The gain on realization will be charged to Ali capital is----- O a. 20000 O b. 25000 O c. 15000 O d. 12000

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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Item Nos. 17 and 18 are based on the following information: The balance sheet for the partnership of Lia, Mia, and Pia, who share profits in the ratio of 2:1:1, respectively, shows the following balances just before liquidation: Cash P 12,000 Liabilities P 20,000 Noncash Assets- 59,500 Lia Capital --- 22,000 Mia Capital 15,500 Pia Capital--- 14,000 P 71,500 P 71,500 On the first month of liquidation, certain assets were sold for P 32,000. Liquidation expenses of P 1,000 were paid and additional liquidation expenses in the future are still anticipated. Liabilities were paid amounting to P 5,400 and sufficient cash was retained to ensure the payment to creditors before making payments to the partners. On the first payment to partners, Lia received P 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 and unpaid liabilities was: a. P…
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E
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