Assume the following data for ABC Partnership had the following condensed balance sheet just before the...
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Assume the following data for ABC Partnership had the following condensed balance sheet just before the liquidation on November 1, 2019: Assets Liabilities and Capital Cash P 24,000 Liabilities P 12,000 A, Loans A, Capital (30%) Non-cash assets 84,000 2,400 9,600 B, Capital (50%) 48,000 C, Capital (20%) 36,000 Total P 108,000 P108,000 Liquidation expenses paid amounted to P1,000. Required: Compute for the total payment for each partner (including loans) using different assumptions: 1. Non-cash assets were realized at P 96,000. 2. Non-cash assets were realized at P36,000. The personal assets and liabilities of the partners on this date are as follows: Personal assets Personal liabilities A P288,000 P240,000 B 216,000 228,000 108,000 108,000 Assume the following data for ABC Partnership had the following condensed balance sheet just before the liquidation on November 1, 2019: Assets Liabilities and Capital Cash P 24,000 Liabilities P 12,000 A, Loans A, Capital (30%) Non-cash assets 84,000 2,400 9,600 B, Capital (50%) 48,000 C, Capital (20%) 36,000 Total P 108,000 P108,000 Liquidation expenses paid amounted to P1,000. Required: Compute for the total payment for each partner (including loans) using different assumptions: 1. Non-cash assets were realized at P 96,000. 2. Non-cash assets were realized at P36,000. The personal assets and liabilities of the partners on this date are as follows: Personal assets Personal liabilities A P288,000 P240,000 B 216,000 228,000 108,000 108,000
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Answer is highlighted in bold Cash distribution to partners a Non cash assets realized for 96000 ABC company Statement of partnership liquidation Cash ... View the full answer
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