Question
A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P130,000 Non-cash assets 300,000 A, Capital 60,000 B, Capital
A, B and C partnership had the following balances just before entering liquidation:
| Cash | P10,000 | Liabilities | P130,000 |
| Non-cash assets | 300,000 | A, Capital | 60,000 |
| B, Capital | 40,000 | ||
| C, Capital | 80,000 | ||
| Total | P310,000 | Total | P310,000 |
A, B and C share profits and losses in the ratio of 3:4:, Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A was personally insolvent, B and C were both solvent and able to cover deficit in their capital accounts, if any. What amount of cash should be paid to partner A?
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Payroll Accounting 2018
Authors: Bernard J. Bieg, Judith Toland
28th edition
1337291056, 978-1337291057, 1337291137, 9781337291132, 9781337516686 , 978-1337291040
