The partnership is liquidated on installment basis. In the first month of the liquidation process: a....
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The partnership is liquidated on installment basis. In the first month of the liquidation process: a. 80% of the accounts receivable was collected for only P60,000. b. Two-thirds of the inventory was sold for P80,000. c. Equipment with carrying amount of P300,000 was sold for P240,000. d. P4,000 liquidation expenses were paid. An additional P2,000 is expected to be incurred in the succeeding periods. e. P18,000 cash is set aside for potential unrecorded liabilities. Requirement: Compute for the cash distributions to the partners. The partnership is liquidated on installment basis. In the first month of the liquidation process: a. 80% of the accounts receivable was collected for only P60,000. b. Two-thirds of the inventory was sold for P80,000. c. Equipment with carrying amount of P300,000 was sold for P240,000. d. P4,000 liquidation expenses were paid. An additional P2,000 is expected to be incurred in the succeeding periods. e. P18,000 cash is set aside for potential unrecorded liabilities. Requirement: Compute for the cash distributions to the partners.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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