The partneship is to be liquidated by installment. The first sale of noncash assets with a carrying amount of P60,000 realizwed at P45,000. Liquidation expenses paid amounted to P1,000 How much cash should be distributed to Jean, Hera and Steph respectively?

The partneship is to be liquidated by installment. The first sale of noncash assets with a carrying amount of P60,000 realizwed at P45,000. Liquidation expenses paid amounted to P1,000 How much cash should be distributed to Jean, Hera and Steph respectively?

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Jean, Steph and Hera, partners, share net income and losses in the ration of 5:3:2. The partners decided to liquidate the partnership.
Their statement of financial position is:
Assets
Cash
P20,000.00
Other assets
105,000.00
Total Assets
P125,000.00
Liabilities and Equity
Liabilities
P30,000.00
Jean, Loan
4,000.00
Jean, Capital
20,000.00
Steph, Capital
36,000.00
Hera, Capital
35,000.00
Total
P125,000.00
The partneship is to be liquidated by installment. The first sale of noncash assets with a carrying amount of P60,000 realizwed at
P45,000. Liquidation expenses paid amounted to P1,000

Liabilities
P30,000.00
Jean, Loan
4,000.00
Jean, Capital
20,000.00
Steph, Capital
36,000.00
Hera, Capital
35,000.00
Total
P125,000.00
The partneship is to be liquidated by installment. The first sale of noncash assets with a carrying amount of P60,000 realizwed at
P45,000. Liquidation expenses paid amounted to P1,000
How much cash should be distributed to Jean, Hera and Steph respectively?

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