1.) ABC Co. is undergoing liquidation. Information before the start of the liquidation process is as follows:...
Question:
1.) ABC Co. is undergoing liquidation. Information before the start of the liquidation process is as follows:
Cash | 10,000 | Liabilities | 80,000 |
Accounts Receivable | 80,000 | Payable to B | 20,000 |
Receivable from A | 10,000 | A, Capital (50%) | 250,000 |
Inventory | 180,000 | B, Capital (30%) | 150,000 |
Equipment, net | 320,000 | C, Capital (20%) | 100,000 |
Total | 600,000 | Total Liab. & equity | 600,000 |
The total cash distributed to the partners after the first and second sales of non-cash assets were P12,000 and P30,000, respectively. How much cash did C receive in the second cash distribution?
a.) 6,400
b.) 7,600
c.) 3,600
d.) 0
2.
Use the following information for the next two questions:
Jack and Beans who share in profits and losses in the ratio of 3:7, decide to liquidate their Talk Partnership. The partner’s capital balances were P300,000 and P190,000, respectively.
2. If on the final settlement of the partner’s claims Beans received P99,000 how much did Jack receive?
a.) 261,000
b.) 234,000
c.) 89,000
d.)0
3. Before the realization of non-cash assets, the partnership has a zero balance in its cash account and a P200,000 balance in its liabilities. If Jack received P261,000 on the final settlement on the partners’ claim, how much were the net proceeds from the sale of the non-cash assets?
a.) 560,000
b.) 360,000
c.) 290,000
d.) 0
Note: Please give detailed solution, thank you! :3
Expert Answer:
1Option B is correct 7600 Noncoins belongings Our definition for noncash assets those are assets tha... View the full answer
