3. Partners Macky, Joey and Vico share profits and losses in the ratio of 5:3:2. At...

 

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3. Partners Macky, Joey and Vico share profits and losses in the ratio of 5:3:2. At the end of a very unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this time are as follows: Macky Joey Vico P22,000 24,900 15,000 The liabilities accumulate to P30,000, including a loan of P10,000 from Macky. The cash balance is P6,000. All the partners are personally solvent. The partners plan to sell the assets in installment. (Hint: Use cash priority program) a. If Joey received P2,000 from the first distribution of cash, how much did Macky and Vico receive at that time? b. If Macky received a total of P20,000 as a result of the liquidation, what was the total amount realized from the sale of the non-cash assets? C. If Vico received P6,200 on the first installment of cash, how much did Joey receive at that time? 3. Partners Macky, Joey and Vico share profits and losses in the ratio of 5:3:2. At the end of a very unprofitable year, they decided to liquidate the firm. The partner's capital account balances at this time are as follows: Macky Joey Vico P22,000 24,900 15,000 The liabilities accumulate to P30,000, including a loan of P10,000 from Macky. The cash balance is P6,000. All the partners are personally solvent. The partners plan to sell the assets in installment. (Hint: Use cash priority program) a. If Joey received P2,000 from the first distribution of cash, how much did Macky and Vico receive at that time? b. If Macky received a total of P20,000 as a result of the liquidation, what was the total amount realized from the sale of the non-cash assets? C. If Vico received P6,200 on the first installment of cash, how much did Joey receive at that time?

Answer rating: 100% (QA)

Accounting for the liquidation of a partnership involves four steps as follows Sell non cash assets ... View the full answer