Question
On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and
On December 31, 20x20, 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 | P1,600,000 | Total liabilities | P2,000,000 |
Noncash assets | 1,400,000 | A, Capital | 100,000 |
|
| B, Capital | 500,000 |
|
| C, Capital | 400,000 |
On January 1, 20x21, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent.
As of January 31, 20x21, 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, 20x21.
- 20% of the liabilities to third persons were settled.
- Available cash was distributed to the partners.
As of February 28, 20x21, 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.
- Remaining cash was finally distributed to the partners. How much is the amount of total cash withheld on January 31, 20x21?
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