Numbers 16, 17 and 18 (Partnership Liquidation – Installment Liquidation) On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective...


Numbers 16, 17 and 18 (Partnership Liquidation – Installment Liquidation)<br>On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss<br>ratio of 5:3:2 of respective partners A, B and C. showed the following information:<br>Cash<br>Noncash assets<br>1,600,000<br>1,400,000<br>Total Liabilities<br>2,000,000<br>100,000<br>A, Capital<br>В, Сарital<br>С, Сарital<br>500,000<br>400,000<br>On January 1, 2019, the partners decided to liquidate the partnership in installment. All partners are<br>legally declared to be personally insolvent.<br>As of January 31, 2019, the following transactions occurred:<br>Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000.<br>Liquidation expenses for the month of January amounting to P50,000 were paid.<br>It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month<br>of February, 2019.<br>• 20% of the liabilities to third persons were settled.<br>Available cash was distributed to the partners.<br>As of February 28, 2019, the following transactions occurred:<br>Remaining noncash assets were sold at a loss of P100,000.<br>The final liquidation expenses for the month of February amounted to P100,000.<br>The remaining liabilities to third persons were settled at a compromise amount of P1,500,000.<br>Remaining cash was finally distributed to the partners.<br>16. What is the amount of cash received by partner C on January 31, 2019?<br>A. 260,000<br>В. 240,000<br>С. 300,000<br>D. 350,000<br>17. What is the share of B in the maximum possible loss on January 31, 2019?<br>A. 275,000<br>B. 110,000<br>С. 120,000<br>D. 165,000<br>18. What is the amount of total cash withheld on January 31, 2019?<br>A. 550,000<br>В. 1,600,000<br>C. 1,750,000<br>D. 1,700,000<br>

Extracted text: Numbers 16, 17 and 18 (Partnership Liquidation – Installment Liquidation) On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C. showed the following information: Cash Noncash assets 1,600,000 1,400,000 Total Liabilities 2,000,000 100,000 A, Capital В, Сарital С, Сарital 500,000 400,000 On January 1, 2019, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2019, the following transactions occurred: Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000. Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of February, 2019. • 20% of the liabilities to third persons were settled. Available cash was distributed to the partners. As of February 28, 2019, the following transactions occurred: Remaining noncash assets were sold at a loss of P100,000. The final liquidation expenses for the month of February amounted to P100,000. The remaining liabilities to third persons were settled at a compromise amount of P1,500,000. Remaining cash was finally distributed to the partners. 16. What is the amount of cash received by partner C on January 31, 2019? A. 260,000 В. 240,000 С. 300,000 D. 350,000 17. What is the share of B in the maximum possible loss on January 31, 2019? A. 275,000 B. 110,000 С. 120,000 D. 165,000 18. What is the amount of total cash withheld on January 31, 2019? A. 550,000 В. 1,600,000 C. 1,750,000 D. 1,700,000
Jun 03, 2022
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