17-18. The balance sheet of partners DES, PA and SITO as of December 31, 2020 are shown below: Cash – P50,000; Noncash assets – P250,000; Liabilities – P80,000; Des, Capital (50%) – P100,000; Pa, Capital (25%) P75,000; Sito, Capital (25%) – P45,000. On January 2021, certain noncash assets were sold for a certain amount. Liquidation expenses and liabilities of P4,000 and P25,000 were paid. Future liquidation expenses of P5,000 are anticipated. Pa received P42,750 from the first distribution of available cash. 17. How much is the cash received from the realization? a. P120,000 b. P140,000 c. P130,000 d. P75,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
17-18. The balance sheet of partners DES, PA and SITO as of December 31, 2020 are shown below: Cash
– P50,000; Noncash assets – P250,000; Liabilities – P80,000; Des, Capital (50%) – P100,000; Pa, Capital
(25%) P75,000; Sito, Capital (25%) – P45,000. On January 2021, certain noncash assets were sold for a
certain amount. Liquidation expenses and liabilities of P4,000 and P25,000 were paid. Future liquidation
expenses of P5,000 are anticipated. Pa received P42,750 from the first distribution of available cash.
17. How much is the cash received from the realization?
a. P120,000
b. P140,000
c. P130,000
d. P75,000
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